Dollar Faces Decline Amid Fed Rate Cut Predictions and Trump's Monetary Policy Influence

The U.S. dollar held its ground on Friday but is set for a 2% fall in August against major currencies, driven by growing anticipation that the Federal Reserve will cut interest rates next month. Investors continue to monitor the Fed's actions as President Trump's influence over monetary policy remains a concern.

A legal battle ensues as Fed Governor Lisa Cook filed a lawsuit challenging President Trump's attempt to remove her from office. This latest development is part of Trump's ongoing efforts to reshape the central bank, which have slightly affected the dollar's value on the currency market.

Market responses have been minimal, with slight dollar selling and curve steepening. Investors keep their eyes on upcoming reports and the Federal Reserve's September meeting, as inflation measures such as the PCE price index are reviewed for further monetary policy clues.

(With inputs from agencies.)