USD index drops 0.22% on Trump's Fed Governor nomination news

The dollar index retreated 0.22% today, though it remains above Thursday's 1.5-week low, as President Trump's nomination for Fed Governor sparked market uncertainty. The greenback faced additional pressure from robust equity market performance, which reduced safe-haven demand for the US currency. Stock market strength typically diminishes liquidity demand for dollars as investors rotate into risk assets. The nomination news has raised questions about potential shifts in monetary policy direction, contributing to dollar weakness across major pairs. Market participants are evaluating how new Fed leadership might influence interest rate decisions and overall policy stance. Technical analysis shows the dollar index testing near-term support levels, with traders closely monitoring Fed-related developments. The combination of strong equities and Fed uncertainty suggests continued pressure on the dollar in the near term.