USD weakens across majors as Fed independence fears mount
The US dollar has declined 0.5% against major currencies during Monday's session, with the DXY index falling to 103.20 as concerns over Federal Reserve independence rattled markets. EUR/USD gained 0.4% to 1.0885, while USD/JPY dropped 0.6% to 145.50 as traders reassessed dollar positions amid political uncertainty. Market participants fear potential political interference could compromise the Fed's ability to conduct independent monetary policy, undermining dollar credibility. Additionally, renewed tariff threats have raised concerns about potential economic disruption and inflation pressures. Technical analysis shows the DXY testing support at 103.00, with a break below potentially accelerating dollar weakness. Near-term dollar sentiment remains fragile, with traders monitoring political developments closely for signs of escalation or resolution.
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