Today's Edition
TOKYO (Reuters)
The euro jumped along with risk-sensitive currencies like the Australian dollar on Monday after President Donald Trump backed down from threatened 50% duties on European Union shipments from June 1, after the bloc asked for time to "reach a good deal."
The dollar continued its slump against a broad swathe of currency peers as Trump's policy reversals, as well as his sweeping spending and tax-cut bill currently in legislation, turned investors off from US assets.
The euro climbed as much as 0.55% to reach $1.1418 for the first time since April 29.
The Aussie jumped 0.58% to $0.6537, a level not seen since November 25. The New Zealand dollar soared 0.75% to the highest since November 7 at $0.6031.
Sterling advanced as much as 0.38% to scale its highest level since February 2022.
The safe-haven yen and Swiss franc were overall weak as market sentiment improved, but they still appreciated against the embattled US 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 franc.
The US dollar index, which tracks the currency against six major rivals, sank 0.3% to 98.813, extending a 1.9% tumble from last week.
Trump announced the decision to put off EU tariffs until July 9 on Sunday, following 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 most other trade partners.
The de-escalation just two days after Trump issued the threat is a stark reminder of how suddenly US trade policy can turn, even as it encouraged investors that deals can be struck and calmed worries about a global downturn.
In a possible nod to fiscal worries among investors, Trump also said on Sunday that his sweeping spending and tax cut bill is likely to see "significant" changes in the Senate.
The House of Representatives' version of the tax bill is calculated to add about $3.8 trillion to the federal government's $36.2 trillion in debt over the next decade, according to the Congressional Budget Office.
