Fed-Independence Tussle: Dollar Declines Amid Trump-Powell Feud

The U.S. dollar fell alongside equity futures following Federal Reserve Chair Jerome Powell's claim of a criminal threat from the Trump administration. The ongoing conflict raises concerns about the Fed's independence, impacting financial markets. Meanwhile, gold reached record highs due to geopolitical tensions.

The U.S. dollar faced a declining trend on Monday, accompanied by a dip in U.S. equity futures after Federal Reserve Chair Jerome Powell revealed that the Trump administration had threatened him with a criminal indictment. This revelation sparked concerns regarding the independence of the central bank.

S&P 500 futures slipped by 0.5% while gold hit a new record high amid escalating tensions between President Donald Trump and the Federal Reserve. The Swiss franc and euro strengthened as traders digested the unsettling news, pointing to potential risks for interest rate policies.

Geopolitical tensions buoyed gold prices to over $4,600 an ounce, while technology stocks led the rise in Asian markets. The ongoing feud between Trump and Powell, highlighted by Powell's accusations of undue pressure, underlines political uncertainties impacting the dollar's stability.

(With inputs from agencies.)