The dollar index slipped toward 97 on Monday, sliding for the third straight session to its weakest levels in four months. The greenback depreciated the most against the yen as fears of a joint currency intervention by the US and Japan intensified on reports that the New York Federal Reserve had checked dollar/yen rates with dealers on Friday. The dollar was also pressured by heightened geopolitical and trade risks, alongside growing expectations that President Donald Trump may soon replace Fed Chair Jerome Powell with a more dovish candidate. Trump initially threatened several European countries with new tariffs as part of a bid to take over Greenland, before reversing course following a framework agreement toward a future deal. He also warned of imposing 100% tariffs on Canada should it reach a trade agreement with China. Looking ahead, the Fed is widely expected to keep rates unchanged this week, with markets focused on guidance for signals on the timing of the next rate cut.
