The US dollar plunged to a three-year low on Monday following a fresh wave of criticism from President Donald Trump targeting Federal Reserve Chair Jerome Powell, raising concerns over the central bank’s independence and denting investor confidence in the US economy.
The dollar index, which measures the greenback against a basket of major currencies, fell as low as 97.923 — its weakest level since March 2022. The dollar also slumped to a decade-low against the Swiss franc and lost ground against several other major currencies, including the euro, yen, and sterling.
The sharp decline followed a series of social media posts from President Trump on Monday, in which he referred to Powell as a “major loser” and reiterated his demand for immediate interest rate cuts.
The President’s criticism intensified speculation about political interference in monetary policy, particularly after White House economic adviser Kevin Hassett confirmed on Friday that the administration was exploring legal avenues to remove Powell. This came a day after Trump publicly stated that Powell’s termination “cannot come fast enough” as he called for the Fed to cut interest rates.
Currency Market
The dollar dropped more than 1.5% against the Swiss franc to 0.8063, marking its lowest level in ten years. The euro reached $1.1535 — its highest level since November 2021. Against the Japanese yen, the greenback fell to a seven-month low of 140.66, amid record-high net-long positions on the yen, according to CFTC data for the week ended April 15.
Sterling rose to $1.34, its highest level since September, while the Australian dollar hit a four-month peak at $0.6430. The New Zealand dollar reclaimed the $0.6000 level for the first time in over five months.
Meanwhile, the Chinese yuan strengthened, with the onshore unit rising to a two-week high before retreating slightly. The offshore yuan was last quoted at 7.2931 per dollar.
US Stock Market
The US stock market indices ended sharply lower on Monday as President Trump’s continued attacks on the Federal Reserve chair and the bank’s monetary policy rattled investors.
The Dow Jones Industrial Average declined 971.82 points, or 2.48%, to 38,170.41, while the S&P 500 slipped 124.50 points, or 2.36%, to 5,158.20. The Nasdaq Composite closed 415.55 points, or 2.55%, lower at 15,870.90.
Investors moved capital into traditional safe-haven assets. Gold prices surged to a fresh record high, while the Swiss franc also strengthened significantly, reflecting a growing risk-off sentiment in global markets.
(With inputs from Reuters)
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