Ammon News - The dollar and longer-dated U.S. Treasuries slid on Tuesday after President Donald Trump announced he was firing a Federal Reserve governor, an unprecedented move that further undermines confidence in the Fed's independence and U.S. assets.

The U.S. currency fell against the euro after Trump said he was removing Lisa Cook from her position on the Fed's board of directors, citing allegations of improprieties in obtaining mortgage loans and escalating the president's battle against the central bank.

Stock markets in Asia followed declines on Wall Street as the news muddied the outlook for Fed policy and stoked uncertainty over prospects for a rate cut next month. Gold touched a two-week high and U.S. equity futures fell, as Trump also renewed tariff threats on trade partners.

The euro added 0.1% to $1.1631. The yen was flat at 147.82 per dollar after earlier jumping more than 0.5%.

The dollar index , which tracks the greenback against a basket of currencies, retreated 0.1% after a 0.7% gain on Monday.

The yield on the benchmark U.S. 10-year Treasury note rose 3.1 basis points (bps) to 4.306%. The yield on the 30-year bond rose 4.7 bps to 4.936%.

The two-year Treasury yield, which typically moves in step with interest rate expectations for the Fed, fell 1.3 bps to 3.717%. Reuters