Dollar Falls to Worst Monthly Performance Since April Amid Diplomacy Shift

The US dollar has had its worst monthly performance since April due to doubts over Kevin Warsh's hawkish views and the US's intention to shift from air strikes to diplomacy in the Middle East.

Speculators are unwinding their net long positions in the greenback, which had been at record levels since 2015. The simultaneous sell-off of both the currency and Treasuries points to a decline in confidence in the policies pursued by the White House and the Fed.

The Treasury's involvement in currency interventions coordinated with Japan is another factor weakening the dollar. Over three trading days, the greenback plummeted to its lowest level since early May, with an estimated scale of intervention at $54 billion on one of these days.