Key Facts
• August 20, 2025: Dollar fell in the New York forex market.
• Trump demanded Fed Governor Cook resign over alleged mortgage fraud.
• July FOMC minutes revealed most officials opposed rate cuts.
• Dollar index dropped 0.13% to 98.20 by the end of trading.
• Euro/Dollar rose 0.09% to 1.1657; Yen/Dollar gained 0.32% to 147.20.
• September FOMC rate cut probability: 83%; 54 basis points expected by year-end.
• NZ Dollar fell 1.12% to 0.5826 after a 25-basis-point rate cut by New Zealand’s central bank.
• Pound/Dollar declined 0.3% to 1.3449 despite UK CPI rising 3.8% YoY in July.
• Bitcoin dropped 0.22% to $113,322.
• Dollar/Yen trading range: 146.88 (low) to 147.54 (high).
Summary
The dollar weakened in the New York forex market on August 20, 2025, following former President Donald Trump’s demand for Federal Reserve Governor Cook’s resignation over alleged mortgage fraud. This raised concerns about political interference in the Fed. However, the release of July FOMC minutes, showing most officials opposed rate cuts, helped the dollar recover some losses. The dollar index fell 0.13% to 98.20, while the Euro and Yen gained against the dollar. Market focus shifted to Fed Chair Powell’s upcoming Jackson Hole speech. Meanwhile, New Zealand’s central bank cut rates by 25 basis points, pushing the NZ Dollar down 1.12%. The Pound also weakened despite a 3.8% YoY rise in UK CPI. Bitcoin saw a slight decline, trading at $113,322.
