Euro trades at one-month high after Trump delays EU tariffs
The euro hit a one-month high against the U.S. dollar on Monday, after U.S. President Donald Trumpbacked down from threatened 50% duties on European Union shipments from June 1, as the bloc asked for time to "reach a good deal".
The dollar continued its decline against a broad spectrum of other currencies as Trump's policy reversals, as well as the sweeping spending and tax-cut bill, turned investors away from U.S. assets.
The euro climbed as much as 0.55% to reach $1.1418 for the first time since April 29. It was last up 0.17% on the day at $1.1375, bringing gains for the year so far to 10%.
Sterling rose by 0.39% to its highest level since February 2022 and was last up 0.1% at $1.356.
The safe-haven yen and Swiss franc were overall weak as market sentiment improved, but both still appreciated against the U.S. dollar.
The greenback slipped as much as 0.24% to 142.23 yen , the lowest level this month, and edged to a 2-1/2-week low of 0.8193 francs .
The U.S. dollar index , which tracks the currency against six other currencies, was flat at 99.06.
Trump announced the decision to put off EU tariffs until July 9 on Sunday after a call with European Commission President Ursula von der Leyen, who asked for more time to reach an agreement. July 9 is the end of the 90-day pause on Trump's April 2 "Liberation Day" levies on the EU and many other trade partners.
The announcement, although encouraging for investors, is a stark reminder of how suddenly U.S. trade policy can turn.
Source: Reuters
