The greenback slumped on Monday as investors concerns were stirred by White House comments hinting at a potential transformation of the Federal Reserve, leading to questions about the central bank's independence.

The dollar index that gauges the greenback versus its major pairs dipped 1.2% to 98.21, touching earlier the lowest level in three years of 98.164.

EUR/USD ticked up by 1.3% to $1.1542.

GBP/USD hit the highest level not seen since September.

USD/JPY dipped to the lowest level in 7 months.

Trading volume was low, with many European markets, as well as those in Hong Kong and Australia, closed for Easter Monday. Most markets were also closed for the holiday on Friday.

White House economic adviser Kevin Hassett hinted that Trump’s team is exploring the possibility of firing Fed Chair Jerome Powell, following Trump’s renewed threat to remove him over slow interest rate cuts.

Last week, Powell stated the Fed was unlikely to lower interest rates soon, citing inflation risks and economic uncertainty from new tariffs.

On Monday, the People’s Bank of China kept its benchmark loan prime rate unchanged, suggesting Beijing may favor fiscal measures over further monetary easing to boost economic growth.