The US dollar index extended its decline on Monday, slipping below the 98 mark and moving closer to the 2022 lows revisited last month. Investor sentiment remained cautious amid heightened uncertainty surrounding upcoming tariffs and growing concerns over the Fed’s independence. With the August 1st deadline approaching, Commerce Secretary Lutnick reaffirmed it as a "hard deadline" for countries to begin paying tariffs, although negotiations are expected to continue. Adding to market unease, Treasury Secretary Bessent called for a re-evaluation of the Fed as an institution. President Trump’s renewed criticism of Chair Powell for not cutting interest rates has fueled speculation that Powell could be dismissed. Despite the recent pullback, the greenback remains up nearly 1% for July, positioning it for its first monthly gain of 2025. The advance has been supported by stronger-than-expected economic data, which has tempered market expectations for Fed rate cuts this year.