The U.S. dollar rose against the euro and sterling on Wednesday, though investor worries over the Federal Reserve’s independence continued to weigh on the currency. The euro slipped 0.4% to $1.1593, while sterling fell 0.3% to $1.3441, retracing some gains after former President Trump announced plans to fire Fed Governor Lisa Cook over alleged mortgage irregularities.
Cook has said she will sue to prevent her removal, setting up a potential legal battle. Trump’s move adds to ongoing pressure on the Fed to lower interest rates, contributing to a steeper U.S. Treasury yield curve. Analysts said the dollar’s resilience reflects market caution ahead of August employment and inflation data, with money markets pricing an 87% chance of a 25-basis-point Fed rate cut in September, News.Az reports, citing Reuters.
Elsewhere, political uncertainty in France is affecting the euro, while the dollar also gained slightly against the Japanese yen and Swiss franc.
