Trump's Fed Criticism Fuels Dollar Decline Against Yen

The U.S. dollar hit a new seven-month low against the yen as President Trump's criticism of Federal Reserve Chairman Jerome Powell diminished investor confidence. Trade negotiation delays with Thailand and ongoing tensions with China further contributed to the dollar's drop amid concerns over U.S. monetary policy independence.

The U.S. dollar sank to a seven-month low against the yen on Tuesday, reacting to President Trump's persistent criticism of Federal Reserve Chairman Jerome Powell. Trump's comments, alongside postponed trade talks with Thailand, added to investor unease over the U.S. economy.

The dollar also fell near a decade-low against the Swiss franc and approached a 3-1/2-year trough against the euro. Trump's scathing remarks on Truth Social referred to Powell as a "major loser," demanding immediate interest rate cuts to prevent economic slowdown.

Further pressure came as China accused the U.S. of tariff abuse, fueling trade war fears between the global economic giants. The dollar's decline was also noted with a drop in the U.S. dollar index against major currencies.

(With inputs from agencies.)