US Dollar Index Slides Toward 97.00 Amid Trade Talks and Fed Chair Speculation

US Dollar Index Falls Toward 97.00 on Trade and Fed Uncertainty

The US Dollar Index (DXY) slid to 97.15 early Thursday in Asia, marking its weakest point since July 7. The decline reflects growing investor unease amid ongoing US-China trade uncertainties, political developments in Japan, and the unresolved question of Federal Reserve leadership.

Trade Deal Optimism Fades Amid Political Risks

Initial optimism around the US-Japan trade agreement gave the dollar temporary support. However, this was soon offset by renewed political jitters, especially concerning Japanese Prime Minister Shigeru Ishiba, adding a layer of global uncertainty that dented dollar strength.

Fed Chair Powell Under Pressure

Markets are also reacting to the political overhang surrounding the Federal Reserve's independence. President Donald Trump has frequently criticized Fed Chair Jerome Powell, urging his resignation due to the Fed’s resistance to deeper rate cuts.

On Thursday, US Treasury Secretary Scott Bessent stated that a new Fed Chair nominee will likely be announced by December or January, although he noted there is "no hurry" in selecting a replacement. The candidate may be chosen from existing board members or regional Fed presidents, further fueling speculation on the future direction of US monetary policy.

What to Watch on Tredu

• Live US Dollar Index (DXY) Chart
• Federal Reserve Policy Watch
• Impact of Political Risk on USD