German merchant bank: Concerns about the independence of the Federal Reserve are putting pressure on the US dollar.

Volkmar Baur, from Deutsche Bank, said in a report that concerns about the independence of the Federal Reserve may explain why the US dollar quickly reversed lower after briefly rising following the central bank's decision to keep interest rates unchanged on Wednesday. Federal Reserve Chairman Jerome Powell, after being repeatedly asked about political pressure to cut interest rates, was forced to defend the importance of the central bank's independence. Christopher Waller's vote in favor of a rate cut also suggests that politics is slowly "creeping into the Fed," with some speculating that he may be trying to increase his chances of becoming the next Federal Reserve Chairman. Baur said that if the market no longer believes that the Federal Reserve can pursue an independent policy, the US dollar will suffer. The DXY dollar index fell 0.1% to 96.369.