He dollar fell on Monday to its lowest level in three years Because the confidence of investors in the US economy suffered another blow for the president’s attacks Donald Trump against the chief of lFederal reservewhich could endanger the independence of the Central Bank.
Trump rereciated on Monday through social networks his criticisms of the president of the Fed, Jerome Powellcalling him “Great Loser” and demanding that interest rates immediately.
In front of a foreign exchange basketthe dollar fell on Monday to 97,923, its lowest level since March 2022. The green ticket also fell to a minimum of a decade against the Swiss Franco, while the euro exceeded $ 1.15.
The economic advisor of the White House, Kevin Hasettsaid Friday that the president and his team They kept studying if they could say goodbye to Powelljust one day after Trump said his departure “can’t get enough” while asking the Fed to cut the interest rates.
Dollar in the world: how the markets were on Monday
The negotiation was scarce with most European markets and those of Australia and Hong Kong closed on Easter Monday. Most world markets remained closed on Friday by the Holy Week holiday.
US actions suffered strong losses on Monday after Trump’s publication on social networks about Powellwith the three main indices lowering more than 2%, as well as strong losses in the group of the “magnificent seven” of the megacapitalization actions in the Nasdaq, of great technological weight.
“Powell does not depend directly on Trump, so (Trump) he can’t really say goodbye.Olo can be dismissed under certain procedures, which one would think they have a higher barrier“said Vishnu Varrathan, head of Macro Research for Asia Ex-Japan in Mizuho.
“But can the president move the gears to undermine the perception of independence of the Federal Reserve? Of course he could.”
In front of the franc Swiss, The dollar sank more than 1.5% to a minimum in 10 years of 0.8063, While the euro reached a maximum of $ 1,1535, its highest level since November 2021.
The dollar also reached a minimum of seven months against Yenand it was last placed in 140.66. The CFTC data showed that the long net positions in the Japanese Yen reached a historical maximum in the week ended on April 15.
“If the double mandate of the Central Bank – preserve the stability of prices and foster full employment – is diluted with a new set of objectives defined by the White House, Political responsible could be unable to drastically harden policy in the face of a sudden increase in prices“Karl Schamotta said in a note Mercado de Corpay Chief in Toronto.
The sterling pound rose to its highest level since Septemberat $ 1.34, while the Australian dollar reached a maximum of four months, $ 0.6430.
The generalized tariffs of Trump and the uncertainty about their commercial policies sent to the global markets in chopped and obscured the perspectives of the world’s largest economy, in turn weakening the dollar as investors withdraw money from US assets.
Source: Ambito
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