Trump's Fed Selection Looms Over U.S. Economic Stability

The U.S. dollar maintained its recent range on Wednesday as investors stayed cautious following weak data and anticipation of President Trump's nomination for the Federal Reserve Board of Governors. Trump's selection is poised to impact monetary policy, possibly introducing political influence into the central bank's decisions.

July's U.S. services sector data showed stagnant activity alongside rising input costs, highlighting the economic strains from Trump's tariffs. Investors are alert to the potential market effects of the upcoming Fed decision and the growing concern over the integrity of central bank policies amidst political pressures.

The foreign exchange market reflected these uncertainties, with the dollar stabilizing against the yen and other currencies. While Treasury yields rose slightly, expectations for a Fed rate cut remain strong as traders closely monitor economic indicators and policy signals.

(With inputs from agencies.)