US dollar rises despite lingering worries about Fed independence

The US dollar rose against major currencies on Wednesday, rebounding from yesterday's pullback as investors turned their focus to upcoming US economic data for policy cues, even as worries persist over the Federal Reserve's independence.

Market fears are lingering after US President Trump announced the dismissal of Lisa Cook, a member of the bank's board of governors, due to allegations of misconduct in obtaining mortgage loans.

The US dollar index, which measures the performance of the greenback against a basket of six major currencies, ticked 0.44% higher to 98.66 points at 01:49 pm Makkah time.

The euro fell 0.52% against the US currency to $1.1582, with the British pound also down 0.41% to $1.3425. Further, the greenback inched up by 0.47% against the Japanese yen to 148.15 yen.

Markets continue to anticipate a 25 basis point interest rate cut at the Fed’s next meeting in September, particularly following Fed Chairman Jerome Powell's recent remarks at the Jackson Hole Symposium.

Investors are also monitoring the growing political uncertainty in France and its impact on the euro, as Prime Minister François Bayrou struggles to save his government.