USD weakness continues as Trump confirms Powell will remain Fed Chair

The US dollar index fell 0.3% to 104.20 during Asian trading after President Trump confirmed he will not fire Federal Reserve Chair Jerome Powell, easing concerns about political interference in monetary policy. The announcement provided stability to currency markets, with USD/JPY dropping 0.25% to 156.60 and EUR/USD gaining 0.2% to 1.0865. Asian currencies broadly strengthened against the dollar, with AUD/USD rising 0.35% to 0.6580 and NZD/USD up 0.3% to 0.5920. The confirmation removes a significant uncertainty factor that had been weighing on risk sentiment. Markets are now refocusing on economic fundamentals and the Fed's data-dependent approach to policy. Technical analysis shows the dollar index testing support at 104.00, with a break below potentially accelerating the downtrend toward 103.50. The reduced political risk premium supports a more stable trading environment for major currency pairs.