Dollar's Decline: Market Overcomes Federal Reserve Uncertainty

The US dollar tumbled to its lowest point in over three years, even as global equity markets soared to record highs. This financial turbulence is attributed largely to increasing market anxiety over the Federal Reserve's independence.

According to sources, President Trump is considering swapping Fed Chair Jerome Powell before his term ends, potentially impacting investor confidence and contributing to the dollar's weakness. This market sentiment suggests the next chair may embrace more dovish policies, further pressuring the currency.

Global markets reacted variably: Asian markets hit highs, the euro strengthened, and oil prices rebounded. Meanwhile, US Treasury yields dropped amidst ongoing trade negotiation concerns and geopolitical influences involving Iran.

(With inputs from agencies.)