Trump's Fed Feud and the Dollar's Decline

Investor sentiment, which was gradually recovering due to a ceasefire between Israel and Iran, faced fresh disruptions after President Donald Trump's criticism of the Federal Reserve Chair Jerome Powell. Trump's comments have reignited concerns regarding the central bank's autonomy, affecting market stability.

The dollar took a hit as it fell to historic lows against the euro and the Swiss franc. Reports suggest Trump may be considering replacing Powell, an action that could challenge the latter's remaining term in office. This ongoing speculation, combined with unpredictable trade policies, has led to increased investor caution and a volatile dollar.

The dollar index is on a downward trajectory, experiencing notable declines as investors seek stability elsewhere. Meanwhile, Trump's looming tariff deadlines are capturing market attention, and defense stocks are under scrutiny after NATO supported significant defense spending hikes. Notably, Shell denied claims of acquisition talks with BP, indicating fluctuating corporate dynamics amid geopolitical uncertainties.

(With inputs from agencies.)