FX.co ★ Dollar Continues to Fall

The dollar index experienced its fourth consecutive decline on Tuesday, reaching 97, marking its lowest point since mid-September. This dip comes as investors brace for the Federal Reserve's upcoming monetary policy announcement on Wednesday. The central bank is expected to maintain current interest rates, however, concerns about its independence from political influence have come to the forefront. There is growing speculation that a new Federal Reserve chair may be announced this week, with President Trump anticipated to nominate a candidate with more dovish views. The dollar is also under pressure from renewed fears of a government shutdown, as Democratic leaders have threatened to oppose a $1.2 trillion funding proposal if it includes additional financing for Homeland Security. Additionally, the dollar is facing downward pressure from the broader "sell America" trend, compounded by speculation about a potential collaborative currency intervention between the US and Japan, aiming to curb further losses in Japanese bonds and bolster the yen.