US Dollar Crashes: Double Attack on Dollar, Slips After 4-Day Rally, Investors Frightened

• The US dollar weakened significantly after a four-day rally, with the Dollar Index slipping to 98.9.
• Concerns about the Federal Reserve's independence, including reports of a criminal investigation into Fed Chair Jerome Powell, are fueling investor unease.
• Jerome Powell warned that political interference could compromise the Fed's impartiality, adding to market instability.
• Weaker-than-expected US Nonfarm Payroll data has increased expectations for Federal Reserve rate cuts.
• Rising geopolitical tensions in Iran and South America are further reducing global risk sentiment, weakening the dollar as investors seek safe-haven assets.

Why It Matters: The US dollar faces a double blow from Fed independence concerns, weak job data, and geopolitical tensions.