The dollar exchange rates are falling today despite the appointment of Kevin Warsh

The stock market day was characterized by a correction of the greenback following the announcement of Kevin Warsh’s appointment as head of the Federal Reserve. U.S. President Donald Trump made this nomination, which initially sparked expectations of a more interventionist approach by the federal institution. According to reports from Jin10, the market initially viewed this appointment as a signal of a more robust monetary policy. However, the exchange rates observed today reflect a certain caution among investors regarding the economic reality.

The Federal Reserve Appointment and Initial Market Movements

The anticipated arrival of Kevin Warsh at the helm of the U.S. central bank triggered an initial surge in the dollar. Market participants quickly anticipated a firmer stance on monetary policy, which should have supported the currency. Nevertheless, this movement quickly dissipated, giving way to profit-taking and a more measured reassessment of medium-term prospects.

Economic fundamentals remain unchanged, according to Commerzbank analysis

Michael Pfister, senior analyst at Commerzbank, highlighted a crucial point in his market assessment: the fundamental conditions of the U.S. economy have not undergone any significant change following this announcement. This observation suggests that the exchange rate movements seen today are more reflective of technical adjustments rather than a profound shift in macroeconomic data. The expert emphasized that the daily price variations remain confined to short-term adjustments.

The dollar has weakened against G10 currencies since the beginning of the year

Pfister also pointed out a broader trend framing these exchange rates: compared to the average of G10 currencies, the U.S. dollar has been in a phase of weakness since early 2026. This gradual depreciation reflects larger dynamics within the global economy and differing expectations regarding monetary policy trajectories across major economic zones. Kevin Warsh’s appointment does not fundamentally alter this medium-term scenario, despite the volatile reactions of the day.