US dollar slides as Fed independence under threat from Trump

The US dollar's slide gathered momentum on April 21 after US President Donald Trump contemplated whether he is able to fire Federal Reserve chairman Jerome Powell, a move that has great consequence for the central bank's independence and for global markets.

- 

Mr Trump launched a series of public attacks against the Fed chief on April 17. Mr Powell's potential removal is likely to erode investor confidence as the US central bank's independence is seen as a key reason for investing in US assets.

The dollar weakened against almost every major currency amid holiday-thinned trading in Asia as investors weighed the risk of Mr Powell's dismissal and how that may further dent sentiment towards US assets.

The dollar tumbled 1.3 per cent to a decade low of 0.8062 against the safe-haven Swiss franc. The greenback also slid 1.3 per cent against the euro, and 1.1 per cent against the Japanese yen.