Asian currencies and the U.S. dollar traded cautiously on Tuesday after President Donald Trump abruptly removed Federal Reserve Governor Lisa Cook, raising concerns over the central bank’s independence.
The U.S. dollar index slipped 0.1% in Asian hours, with dollar index futures also down 0.1%. Cook denied Trump’s allegations of mortgage fraud and challenged the legality of her dismissal, warning that the move undermines the Fed’s credibility and independence.
In currencies, the yen briefly gained 0.1% against the dollar before paring back, while the yuan held steady. The Australian dollar eased 0.1% after RBA minutes signaled more policy easing may be needed. The Korean won rose 0.1%, the Singapore dollar was flat, and the Indian rupee gained 0.2% ahead of fresh U.S. tariffs on Indian goods.