The euro climbs to a one-month high against the U.S. dollar on Monday after President Donald Trump postpones threatened 50% tariffs on European Union goods, easing investor concerns over a potential trade conflict.
The euro touches $1.1418, its strongest level since April 29, before settling at $1.1375. Sterling also gains, rising to its highest level since February 2022 at $1.356.
The dollar weakens across multiple currencies, including the yen and Swiss franc, as traders react to recent U.S. policy shifts and fiscal developments. The greenback slips in part due to investor uncertainty over the administration’s tax and spending plans, which could significantly increase federal debt over the next decade.
Trump’s decision to delay the EU tariff hike follows a phone call with European Commission President Ursula von der Leyen, who requested more time to negotiate a trade agreement. The new deadline is set for July 9, marking the end of a 90-day pause on tariffs first announced in early April.
The European Central Bank signals that the euro may grow in global influence if the bloc strengthens its financial and security institutions. ECB President Christine Lagarde says the current environment presents an opportunity for a “global euro moment.”
Improved investor sentiment leads to modest losses in safe-haven currencies. The dollar rises 0.2% against the yen to 142.84 and holds steady against the Swiss franc at 0.821 francs.
