Dollar Stumbles Amid Fed Independence Concerns

The U.S. dollar weakened as investor concerns grew over President Trump's attempts to exert influence on the Federal Reserve, including threats to fire a governor. This led to doubts about the Fed's independence, affecting the currency's strength against a basket of peers.

The U.S. dollar struggled to maintain its standing on Wednesday as concerns about the Federal Reserve's independence grew. This followed President Donald Trump's latest efforts to influence the central bank's decisions, casting doubt on the dollar's dominant status.

Trump announced plans to dismiss Federal Reserve Governor Lisa Cook, citing improprieties in loan acquisitions. Despite Cook's lawyer planning a legal defense, Trump's actions have raised fears of increasing political interference, undermining confidence in the currency.

Market reactions were mostly subdued across Asia, but the dollar saw slight gains against a currency basket. Observers note this reflects ongoing political tension and expectations of further interest rate cuts.

(With inputs from agencies.)