The U.S. dollar weakened as speculation intensified that Kevin Hassett might be nominated as the next Federal Reserve chair, raising concerns about the central bank's independence. Market analysts suggest that a Fed chair perceived as politically aligned with the White House could introduce a policy-risk premium, complicating the Fed's monetary policy and affecting its credibility. Despite dovish signals from current Fed officials, the potential 'Hassett effect' has shifted foreign exchange sentiment, leading to a softer dollar against major currencies. Traders are closely monitoring potential nomination announcements, upcoming Federal Reserve speeches, and key economic indicators for further direction.