Dollar Under Pressure Amid Fed Dynamics and Trump Intervention

The dollar struggled against major peers due to expectations of a Federal Reserve rate cut after comments from New York Fed Chief John Williams. Meanwhile, President Trump's influence campaign over monetary policy and attempts to dismiss Fed Governor Lisa Cook added to the currency's challenges.

The dollar faced challenges against major currencies on Thursday, as traders boosted expectations for a Federal Reserve rate reduction following signals from New York Fed chief John Williams. This anticipation was compounded by President Donald Trump's intensified efforts to exert more control over monetary policy decisions.

Despite an unexpected confidence vote called by France's prime minister next month, the dollar remained subdued against the euro. The dollar index was stable at 98.145 after recent declines, with the euro trading at $1.1640 and sterling slightly up at $1.3505.

Amidst ongoing monetary discussions and potential policy shifts, President Trump's intent to replace Fed Governor Lisa Cook with his own ally added pressure, potentially leading to more aggressive rate cuts. Analysts suggest a protracted legal battle as Cook fights to retain her position.

(With inputs from agencies.)