Dollar Hits Four-Year Low Amid US Policy Risks and Resurgent Yen

• The Bloomberg Dollar Spot Index fell to its lowest level since March 2022, marking its fourth-straight day of losses.
• Investor caution due to unpredictable Washington policymaking, including Trump's threats and concerns over Federal Reserve independence, is weighing on the dollar.
• Structural drags like fading confidence in US trade policy, politicization of the Fed, and worsening fiscal credibility contribute to the dollar's decline.
• The euro, British pound, and yen strengthened significantly against the dollar, with speculation of coordinated currency intervention.
• Heavy trading volumes and a record premium for hedging against a weaker dollar underscore the negative outlook for the US currency.

Why It Matters: The dollar has reached a four-year low due to US policy uncertainty, fiscal concerns, and global currency shifts.