Today's Edition
SINGAPOR (REUTERS)
The US dollar fell by the most in three weeks on Monday as US prosecutors opened a criminal investigation into Federal Reserve Chair Jerome Powell, adding to tensions with the Trump administration.
The dollar index, which measures the greenback's strength against a basket of six currencies, was last 0.2% lower at 99.011, snapping a five-day winning streak.
Gold jumped to a record $4,600.33 per ounce after the New York Times reported the investigation and Powell issued a video statement defending the central bank's independence.
The dollar had advanced in early Asian trade to a one-month high after Friday's jobs report bolstered expectations the Federal Reserve will hold interest rates later this month.
Financial markets are preparing for a busy data calendar this week, with Tuesday's release of the US consumer price index for December providing one of the last key economic releases before the Federal Reserve's next monetary policy meeting at the end of January.
Major banks kick off the fourth-quarter earnings season in the coming week, with strong profit growth this year a crucial source of optimism for stock investors.
A ruling from the Supreme Court on the legality of Trump's emergency tariffs could also be released as soon as Wednesday.
Against the yen, the US dollar was last 0.1% stronger at 158.135 yen, nearing its strongest in a year after the head of Japanese Prime Minister Sanae Takaichi's coalition partner said on Sunday she may hold a snap election on February 8 or 15.
On Friday, media had reported she was considering a vote that month citing government sources.
The euro was last 0.2% stronger at $1.1656, rebounding from a one-month low.
Against the Chinese yuan trading offshore in Hong Kong , the US dollar shed 0.1% of its value to 6.9706 yuan, its softest in a week and approaching its weakest since May 2023.
The British pound nudged up 0.1% to $1.3422, rebounding from a one-month low, as the Financial Times reported that the EU has requested the UK pay compensation to the bloc if a future British government reneges on a post-Brexit reset deal, citing a draft text.
The Australian dollar strengthened 0.1% to $0.6696, while the New Zealand dollar was 0.2% firmer at $0.5743.
Bitcoin rose 1.5% to $91,975.87, while ether was last up 1.2% at $3,154.93
