Dollar Faces Repeated Blows as Talk Grows of Intervention to Weaken It

The dollar is coming under mounting pressure in global currency markets, as speculation intensifies over a potential coordinated intervention led by the United States to support the Japanese yen, reopening debates about steering the dollar toward weaker levels against major trading partners.

The dollar fell against most major currencies on Monday, while the yen surged and gold hit record highs, as investors weighed how any joint action could further erode confidence in the U.S.

currency.

The greenback recorded its worst weekly performance since May, after unpredictable policymaking in Washington unsettled financial markets, alongside growing concerns over Federal Reserve independence and widening fiscal deficits.

Analysts say potential participation by the New York Federal Reserve in supporting the yen could be interpreted as a clear political signal that President Donald Trump’s administration favors a weaker dollar, potentially boosting the yen and pressuring the U.S.

currency in the short term.

The Bloomberg Dollar Spot Index has fallen more than 9% since early last year, while several Asian currencies strengthened and investors increasingly turned to gold and precious metals as alternatives to fiat currencies amid rising geopolitical risks.