The dollar gave up its early gains in Asian trading on Tuesday after US President Donald Trump announced the dismissal of Lisa Cook, a member of the Federal Reserve Board. The dollar index fell 0.3 percent to 98.187 following Trump’s announcement on social media. This decline came after the US currency posted its largest daily gain in four weeks on Monday. Charo Chanana, chief investment analyst at Saxo Markets in Singapore, said, “Markets are not panicking but are recalibrating. An early interest rate cut seems more likely after Cook’s dismissal.” She added, “But it’s not just about rate cuts; it also concerns the Federal Reserve’s independence and increased institutional risks in the US.” Trump’s unprecedented move escalates his battle with the Federal Reserve, which he criticizes for not cutting interest rates quickly enough, raising investor concerns about the central bank’s independence.

The dollar traded at 147.18 yen, up 0.4 percent from the previous US session close. The euro rose 0.2 percent in Asian trading to 1.1650 dollars, while the British pound traded at 1.3483 dollars. The Australian dollar was at 0.64915 US dollars, up 0.15 percent in early trading. Cryptocurrencies fluctuated between gains and losses after volatile trading over several days. Bitcoin fell 0.2 percent, heading for a fourth consecutive day of losses, while Ether declined 0.1 percent.