U.S. dollar under pressure as investors reassess Trump policies

The U.S. dollar has weakened recently as investors reassess U.S. policy moves and rising geopolitical risk, prompting a notable multi-day slide; Federal Reserve leadership changes and anticipated rate cuts are also cited as factors.

The U.S. dollar has weakened in the early weeks of 2026 as investors reassess recent U.S. policy moves and rising geopolitical tensions. Markets recorded a multi-day slide, described in the article as the largest three-day decline since last April. Analysts and strategists cited a mix of policy signals, central bank expectations and wider market volatility as reasons for changing investor positioning. Federal Reserve leadership timing and expectations about interest-rate cuts were highlighted as material to dollar outlook. Key developments: - The dollar was reported to be heading for its biggest three-day slide since last April. - The article notes several influences: Washington's stated preference for a weaker dollar, recent policy and geopolitical actions by the U.S. administration, and elevated market volatility. - The Federal Reserve is still expected to cut interest rates at least twice this year, and Chair Jerome Powell is announced to step down in May, a scheduled leadership change that markets are watching. - Investors are cited as seeking alternatives, with gold at record levels and some major currencies outperforming the dollar. Summary: The dollar's recent weakness reflects a reassessment of U.S. policy direction and broader geopolitical concerns alongside shifting expectations for interest rates. Powell's scheduled departure in May and market attention on a potential successor are part of the evolving outlook. Undetermined at this time.