Dollar Slides Amid Trump's Criticism of Fed Chair

The dollar reached its lowest level in three years as Trump's criticism of Fed Chair Jerome Powell intensified. This erosion of investor confidence has impacted various currency pairs, while speculation about U.S. monetary policy independence persists, raising concerns of economic instability.

The U.S. dollar languished near a three-year low on Tuesday, battered by President Donald Trump's persistent criticism of Federal Reserve Chairman Jerome Powell. Trump's attacks have fueled investor skepticism regarding the U.S. economy's stability.

On Monday, Trump upped the ante by labeling Powell a "major loser" and demanding immediate interest rate cuts, warning of potential economic slowdown. Such rhetoric has led to heightened fears of destabilization, compounded by unresolved trade tensions with China and concerns about the independence of U.S. monetary policy.

The dollar's struggles were evident against major currencies, including the Swiss franc, euro, yen, and sterling. Observers note that continued investor anxiety could trigger further sell-offs in the U.S. bond and equity markets, pressuring the currency's position globally.

(With inputs from agencies.)