The dollar depreciated sharply to its lowest level in three years amid fears about undermining the Federal Reserve's independence.

The US dollar fell by 10% in 2025 to an all-time low due to President Trump's statements criticizing current Fed chief Jerome Powell. Investors fear that a successor to Powell could undermine the central bank's independence and promote a low interest rate policy. The European Central Bank has also urged financial institutions to prepare for a possible crisis without the Fed's backing. A survey shows that 70% of foreign exchange reserve managers are discouraged from investing in the dollar, which could lead to an appreciation of the euro.