FX.co ★ Dollar Slips Ahead of Powell Speech Amid Trade Uncertainty

The U.S. dollar index fell below the 100 threshold on Wednesday, nearing its lowest point in three years. This decline comes as investors anxiously await a significant speech from Federal Reserve Chair Jerome Powell. The market remains jittery as the Federal Reserve navigates the challenging task of bolstering economic growth while addressing the potential risk of inflation spurred by tariffs. Contributing to the uncertainty, President Donald Trump has initiated a new investigation into possible tariffs on all critical mineral imports, many of which are sourced from China. This move has added further complexity to the trade outlook, with no signs yet of renewed negotiations between Washington and Beijing. The dollar exhibited widespread weakness, most notably against currencies such as the euro, the Australian dollar, and the Japanese yen, as traders exercised caution in anticipation of Powell’s remarks and evolving trade developments with the U.S.'s major economic partners.