Dollar Falls With Treasuries as Trump Seeks to Oust Fed’s Cook

The dollar weakened against every major peer after President Donald Trump moved to oust Federal Reserve Governor Lisa Cook from her post, denting sentiment toward the world’s reserve currency.

The Bloomberg Dollar Spot Index fell 0.2% in early Asia trading after Trump sought to remove Cook following that she falsified documents on mortgage applications. Short-dated Treasury yields slipped as investors focused on the outlook for interest-rate cuts and the US central bank’s independence.

“Cook’s removal is dollar negative as it would create another opening for President Trump to appoint a new Governor who may be more inclined to support interest rate cuts,” said Carol Kong , a strategist at Commonwealth Bank of Australia in Sydney. “It further challenges the independence of the FOMC that underpins the safe haven status of the dollar which can in turn lead to more dollar selling.”