Dollar declines to 3-year low as Trump's Fed criticism rattles markets

The U.S. dollar fell to a three-year low against a basket of major currencies Monday as investors reacted to growing uncertainty over U.S. economic policy following President Donald Trump’s renewed criticism of Federal Reserve Chair Jerome Powell.

The dollar’s decline deepened after Trump suggested last week that he wanted to replace Powell, raising concerns about the central bank’s independence. White House economic adviser Kevin Hassett said Friday that the administration was reviewing whether the president could dismiss Powell, just a day after Trump declared that Powell’s removal "cannot come fast enough."

The dollar dropped more than 1% against the Swiss franc, hitting a 10-year low of 0.80695 francs. The euro rose above $1.15 for the first time since November 2021, while the New Zealand dollar climbed past $0.60, its highest level in five months.

Trading volumes were subdued with markets in Australia and Hong Kong closed for Easter Monday. Most global markets were also shut Friday for the holiday.

The dollar also touched a seven-month low of 140.615 yen. Data from the Commodity Futures Trading Commission showed net long positions on the yen reached a record high in the week ended April 15.

Meanwhile, sterling rose more than 0.5% to $1.33855, its strongest level since October, and the Australian dollar hit a four-month peak at $0.6427.

In U.S. bond markets, yields on 10-year Treasuries rose 0.035 percentage points to 4.36%, while 30-year yields climbed 0.065 percentage points to 4.86%. Bond yields move inversely to prices.

The sell-off in the dollar reflects mounting investor unease over potential political interference in Fed policy, which could further destabilize financial markets.