Key Facts
• July 16, 2025: Dollar fell in NY forex market amid instability.
• Trump denied plans to dismiss Federal Reserve Chair Jerome Powell.
• Bloomberg reported Trump was likely to dismiss Powell soon.
• Dollar index dropped 0.25% to 98.34.
• Euro rose 0.3% to $1.1633; Pound increased 0.24% to $1.3411.
• Dollar/yen fell 0.7% to 147.82 yen.
• Bitcoin surged 2.82% to $119,761, hitting a record high on July 14.
• Trump criticized Powell for resisting rate cuts, advocating for rates below 1%.
• ING strategist predicted Powell’s dismissal would negatively impact the dollar.
• NY forex closing rates: Dollar/yen 147.86-147.89, Euro/dollar 1.1634-1.1636.
Summary
The dollar declined in the New York forex market on July 16, 2025, amid speculation over Federal Reserve Chair Jerome Powell’s potential dismissal. While Bloomberg reported that President Trump was likely to remove Powell, Trump later denied having such plans. The dollar index fell 0.25% to 98.34, with the euro rising 0.3% to $1.1633 and the pound increasing 0.24% to $1.3411. Dollar/yen dropped 0.7% to 147.82 yen. Bitcoin surged 2.82% to $119,761, reaching a record high earlier in the week. Analysts warned that dismissing Powell could harm market confidence in the dollar. Trump has criticized Powell for resisting rate cuts, advocating for rates below 1%.
