Dollar Nears Four-Year Low as Trump Comments Fuel Sell-Off Ahead of Fed Decision

• The US dollar is under pressure, hovering near a four-year low after President Donald Trump's comments were interpreted as comfort with a weaker currency.
• Major rivals like the euro, yen, and sterling gained significantly, with the euro surpassing $1.20 for the first time since 2021.
• The dollar index slid over 1 percent to a four-year low of 95.566, reflecting a crisis of confidence amid unpredictable US policies.
• Investors are wary due to rising public spending, political pressure on the Fed, and uncertainty over future monetary policy leadership.
• Attention is on the Federal Reserve's policy decision, where interest rates are expected to remain unchanged, with potential for an extended pause.

Why It Matters: Trump's comments and policy uncertainties are driving the dollar to a four-year low ahead of the Fed decision.