Dollar continues to decline amid abrupt shifts in US tariff policy

The dollar extended its decline on Monday. Sudden shifts in US trade policy, coupled with pressure on the Federal Reserve, undermined investor confidence in the currency, Reuters reports.

Meanwhile, China's Commerce Ministry states that Beijing is reviewing Washington's proposal to negotiate 145% tariffs on Chinese imports. However, the two sides remain far from reaching a consensus.

US President Donald Trump states he will not remove Federal Reserve Chairman Jerome Powell. However, the president called on the Fed to ease monetary policy conditions, Reuters notes.

Meanwhile, the US regulator's meeting is scheduled for Wednesday. According to experts polled by the agency, the interest rate is expected to remain unchanged. The probability of a June rate cut now stands at just 37%, down from 64% a month ago.

The next hurdle for the dollar will be the ISM Services PMI release. Weak data could reignite market concerns about a US economic slowdown, Reuters notes.