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The US dollar index has fallen to a new three-year low, amid a buzz that Federal Reserve Chairman Jerome Powell might be removed from his position, as per a Funds Dumping the US DollarAccording to traders, hedge funds are selling the dollar against any currencies possible after National Economic Council Director Kevin Hassett on Friday shared that US president Donald Trump was exploring ways to remove Powell, as per of Jerome Powell and Fed PolicyHassett also higlighted that, Powell, who was appointed by Trump during his first term, had acted politically to benefit Democrats, reported Zero said, “The policy of this Federal Reserve was to raise rates the minute President Trump was elected last time, to say that the supply-side tax cuts that were going to be inflationary, adding that Fed officials opted not to go “on TV and at IMF meetings and warn about the terrible inflation from the obvious runaway spending from Joe Biden, and the obvious runaway spending from Joe Biden was textbook inflationary, and then they cut rates right ahead of the election,” quoted Zero market's fear of what Trump might do, has caused a strong sell-off in the US dollar, as per the report. That created a huge rally among other currencies, the euro reached a three-year high, even with Europe's economic struggles, and the yen jumped 11% from January's lows to its highest level against the dollar since mid-2023, reported Zero Hedge. Meanwhile, gold spiked to a new record of $3,373, erasing its recent dip, as per the Defies ExpectationsAmid the sharp decline of the dollar, there was one unexpected outlier: Bitcoin, as per Zero Hedge. Previously, a declining dollar, along with an appreciating yen, would normally take down both tech equities and cryptocurrencies, according to the report. Zero Hedge wrote that, Tonight we finally saw a regime shift, and after flatlining initially, a burst of buying pushed bitcoin almost $2000 higher, above $87000, and its biggest one day move since Liberation Day. FAQsWhy is the US dollar falling? The dollar has droped due to concerns over President Trump’s threat to remove Chairman Jerome are hedge funds reacting to this? Hedge funds are selling the dollar against almost every currency, contributing to its sharp decline.
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