US Dollar Under Pressure: Yen Surges, Trump's Policies, Fed Independence Questioned

• The US dollar is facing significant pressure, falling against major currencies, with the Japanese Yen surging by 1% in Asian trading.
• Market speculation suggests Japan may intervene in the foreign exchange market to support its weak currency, possibly with US backing, further weakening the dollar.
• President Donald Trump's unpredictable trade policies, including tariff threats against Canada, are creating global market instability and impacting dollar confidence.
• Concerns about the Federal Reserve's independence, with fears of political pressure to cut interest rates, are causing foreign investors to distance themselves from the dollar.
• The Bloomberg Dollar Index fell 1.6% last week and an additional 0.4% on Monday, reaching its lowest level since May, indicating investor insecurity.

Why It Matters: The US dollar is weakening due to Yen's strength, potential Japanese intervention, Trump's policies, and Fed independence concerns.