Dollar Dips Amid Powell Investigation and Global Tensions

The U.S. dollar retreated amid an investigation into Federal Reserve Chair Jerome Powell. Geopolitical tensions and market movements influenced currency strength. Meanwhile, commodity prices adjusted as markets braced for economic data releases and earnings reports, reflecting broader concerns over U.S. monetary policy impacts and global economic stability.

The U.S. dollar faced a decline early Monday, reacting to news of a criminal investigation into Federal Reserve Chair Jerome Powell. This development adds to the friction between the Fed and the Trump administration.

Gold prices surged following the revelation, as Powell defended the Fed's independence in a video statement, while experts noted ongoing market volatility. Market strategist Ray Attrill commented on the intensified conflict between the Fed and the U.S. administration, suggesting its negative implications for the dollar.

Amidst rising geopolitical tensions due to the Iranian protests, financial markets are marked by anticipation surrounding key U.S. economic data releases, as well as earnings reports. Market analysts from Standard Chartered highlighted persistent U.S. inflation above the Fed's target, potentially influencing future monetary policy actions.

(With inputs from agencies.)