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The dollar weakened to a three-year low after a report that Donald Trump was considering nominating the next Federal Reserve chair early.
The US dollar fell 0.3 per cent against a basket of key trading partners’ currencies on Thursday morning in Asia, hitting a level last reached in early 2022.
The move came after a Wall Street Journal report that the US president was considering announcing his pick to succeed Federal Reserve chair Jay Powell earlier than expected.
“The US dollar has been weakening on the back of tariff and Trump policy uncertainty. This seems to be an extension of it,” said Kelvin Lau, senior economist for greater China and Asia at Standard Chartered.
“The possibility itself of an early nomination has led to the belief that the Fed could shift to an earlier [interest rate] cut.”
Yields on the rate-sensitive two-year US Treasury fell 0.02 percentage points to 3.76 per cent.
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