The US Dollar Index dropped 0.2% from a one-month high

Asian currencies were little changed on Monday, while the U.S. dollar slid after the U.S. government opened a criminal investigation involving central bank Chair Jerome Powell, raising doubts about the bank’s independence.

The US Dollar Index, which measures the dollar against a basket of major currencies, dropped 0.2% from a one-month high.

US Dollar Index Futures also traded 0.2% lower as of 04:27 GMT.

Investor sentiment was shaken after Powell said the administration had threatened the central bank with a potential criminal indictment linked to his Senate testimony on cost overruns related to renovations at the bank’s headquarters.

The development undermined confidence in U.S. institutions and encouraged a defensive tone across global markets, limiting risk appetite in Asia.

Against that backdrop, most currencies were muted.

The yen’s USD/JPY pair ticked up 0.2%, while the Singapore dollar’s USD/SGD traded flat.

The won’s USD/KRW pair was a notable outlier, climbing 0.7% on Monday.

In China, the yuan’s onshore pair USD/CNY was little changed, while the offshore pair USD/CNH ticked 0.1% lower.

The Indian rupee’s USD/INR pair was largely unchanged.

The Australian dollar’s AUD/USD pair ticked 0.2% higher.

Investor mood was also influenced by U.S. economic data released on Friday, which showed nonfarm payrolls growth slowed more than expected in December.

The softer hiring figures added to expectations that the bank could deliver interest rate cuts later this year.

Markets are now pricing in at least one additional U.S. central bank rate cut in 2026, with some traders expecting two cuts.

Investors now await the U.S. consumer price index for December, due on Tuesday, one of the major economic readings ahead of the bank’s next policy meeting later this month.