The US dollar has been vulnerable to the plans of President Donald Trump. According to Bloomberg, the greenback responded adversely to Donald Trump’s plans to fire Jerome Powell, the Federal Reserve Chairman.

Against this backdrop, the US dollar index (DXY) dropped to 98.212 points. Citing informed sources, Bloomberg reported that the president has not yet made a final decision on the matter. Nevertheless, US lawmakers who support Donald Trump have voiced approval of the move. However, experts believe that such a scenario would roil financial markets and trigger serious legal proceedings. The Federal Reserve has yet to comment on the situation.

President Trump made the statement about a potential replacement for Powell during a meeting with Republican lawmakers, who voted against a cryptocurrency bill on July 15. One of them, Anna Paulina Luna, a legislator from Florida, wrote on social media that she had heard about Powell’s dismissal from a highly reliable source. According to her, the Fed Chairman’s resignation is "99% inevitable."

However, shortly thereafter, the US president stated that he had no plans to remove Jerome Powell. He described such actions as "extremely unlikely." Nevertheless, tensions remain high, and this charged atmosphere is keeping market participants on edge.