Dollar's Sharp Decline: Impact and Implications

The dollar is experiencing its largest weekly decline since last April amidst President Trump's dismissive remarks and geopolitical uncertainties. This depreciation has bolstered other currencies like the euro and yen, while raising concerns about potential intervention by the U.S. and Japan. Investors await the Federal Reserve's policy decision.

The dollar is on course for its most significant weekly drop since last April, catalyzed by President Trump's dismissal of the currency's recent decline. This has accelerated losses against the euro, yen, and pound, as investors become increasingly wary of U.S. assets ahead of the Federal Reserve's policy announcement.

The euro has surpassed the $1.2 mark for the first time since 2021, and the yen is poised for its most robust monthly performance against the dollar since last April. Speculation of potential joint intervention by Japanese and U.S. authorities lingers. The dollar index, which measures the U.S. currency against six others, rose slightly to 96.114 but remains near four-year lows.

President Trump's remarks are perceived as an impetus for further dollar selling while market analysts warn of a persistent crisis of confidence. The Federal Reserve's upcoming decision is crucial, expected to maintain its pause, impacting exporters and raising concerns in other regions such as the eurozone.

(With inputs from agencies.)