At 10:45 in Lisbon, the euro was trading at $1.1727, up from $1.1620 at Wednesday’s close, while the pound was at $1.3750, compared to $1.3640.
The Wall Street Journal reported that U.S. President Donald Trump may select a replacement for Federal Reserve Chairman Jerome Powell in September or October, although Powell’s term is set to end in May 2026.
Trump has repeatedly criticized and insulted Powell for not lowering U.S. interest rates.
Speculation about an early succession plan has heightened currency market expectations that U.S. interest rates could be reduced sooner than previously anticipated.
Potential candidates to replace Powell include former Federal Reserve Governor Kevin Warsh, National Economic Council Director Kevin Hassett, and Treasury Secretary Scott Bessent, as noted by the Wall Street Journal.
The economic daily also lists the former World Bank President David Malpass and Federal Reserve Governor Christopher Waller.
Market concerns over the Fed’s independence have been weighing on the dollar for weeks.
The dollar has weakened this year due to concerns about the U.S. economy following the trade war initiated by Trump.
