JAKARTA – The US dollar index (DXY) dropped to around 98.6 on Monday (21/4), marking its lowest level in the past three years as market anxiety grows over the independence of the US central bank.

The decline followed renewed threats from US President Donald Trump to dismiss Federal Reserve Chair Jerome Powell. The comments heightened market unease amid escalating trade tensions and policy uncertainty under the Trump administration.

Over the weekend, Chicago Fed President Austan Goolsbee warned that tariffs could cause US economic activity to “crash” by summer, according to Fxstreet on Monday (21/4).

Although Washington has initiated trade talks with several key partners, particularly Japan, there have been no signs of breakthroughs or direct negotiations with China. The dollar weakened broadly, posting sharp declines against the euro, yen, and franc.

Previously, Jens Nordvig, Founder and CEO of Exante Data, a data analytics firm serving global investment houses, said the dollar index’s recent slide reflects cumulative shocks experienced by investors worldwide over the past month.

“People are now feeling very uneasy about having high dollar exposure in their portfolios in Europe, Canada, and Australia,” Nordvig told CNBC in an interview on Tuesday (15/4). (DH/MT/ZH)