Dollar Pares Earlier Decline as Flows Dry Up
The dollar fell versus all Group-of-10 currencies except the traditional havens as investors welcomed President Donald Trump’s decision to extend a deadline on aggressive European Union tariffs.
The Bloomberg Dollar Spot Index declines as much as 0.4% to the lowest since December 2023 before paring most of the losses, with flows thin after the European open.
EUR/USD gains as much as 0.5% to 1.1419, a level last seen in late April, before steadying around 1.1380.
US and UK markets are closed for holidays.
Trump said he would extend the deadline for the European Union to face 50% tariffs until July 9 after a phone call with Commission President Ursula von der Leyen. “We had a very nice call,” he told reporters.
The discussions suggest less scope for “steep” US-EU tariffs in the imminent future, says Felix Ryan, an analyst at ANZ. “Likely this will keep pressure on the US dollar near term, especially given that the US and UK are closed for holidays to start the week”.
USD/JPY gains 0.4% to 143.08; USD/CHF up 0.1% to 0.8218, versus 0.8234 day high.
GBP/USD rises as much as 0.4% to 1.3593, the highest since February 2022, before halving gains.
Source: Bloomberg
