Dollar plunges to 96 as Fed stays dovish and fiscal fears grow

The US dollar index dropped to 96 - its lowest in over three and half years and sliding more than 11% so far this year. The persistent weakness stems from dovish Fed expectations and growing unease over President Trumps expansive fiscal agenda. Fed Chair Powell reaffirmed a data-dependent stance while acknowledging tariff-linked inflation as a limiting factor. The Senates narrow approval of a tax-and-spending bill, projected to balloon the national debt by $3.3 trillion, added to market anxiety. Investors now look to upcoming labor data for clues on the Feds next move amid a fragile macroeconomic backdrop and deepening policy uncertainty.

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