Dollar Soars Amid Speculation Over Fed Chair Appointment

The dollar rose as President Trump praised Kevin Hassett, fueling speculation around the Federal Reserve chair appointment. Betting sites favor former Fed Governor Kevin Warsh, bolstering the currency against the yen and the euro. Japan hints at intervention amid yen weakness, affecting market dynamics.

The dollar strengthened on Friday after President Donald Trump lauded Kevin Hassett, an economic adviser, during a White House event. Trump's comments sparked speculation that Hassett may not be chosen as the next Federal Reserve chair, as many expected.

Currency analyst Adam Button noted that this move underscores the political influence on the Fed's decision-making process. The dollar index increased by 0.06% against a basket of currencies, reaching a near six-week peak, spurred by strong U.S. labor market data that suggest interest rate cuts might be delayed.

Meanwhile, Japan signaled potential currency intervention to counteract yen depreciation after warnings from its Finance Minister. The yen slightly rebounded, while in cryptocurrencies, bitcoin experienced a slight drop. All these movements are contributing to a complex global economic landscape.

(With inputs from agencies.)