Global Currencies Surge as Trump Delays EU Tariffs

Global currencies, including the euro and the Australian dollar, gained strength after President Trump postponed the imposition of tariffs on the EU. This decision, along with proposed U.S. tax-spending legislation, has affected investor sentiment, depreciating the U.S. dollar and sparking currency market movements.

The euro and other global currencies experienced a significant boost on Monday following President Donald Trump's decision to delay imposing 50% tariffs on EU imports, initially set for June 1. This move, requested by the EU to facilitate a better deal, comes amid Trump's broader policy shifts, contributing to a weakening U.S. dollar.

Ray Attrill of the National Australia Bank noted the resurgence of the 'Sell America' trend in the currency markets. Investors are factoring in the likelihood that the U.S.-EU tariff resolution won't reach the hefty 50% level, though the path to a deal remains uncertain.

Other global currencies such as the Australian and New Zealand dollars also climbed, while traditional safe havens like the yen and Swiss franc saw a modest rise against the U.S. dollar. Trump's call with European Commission President Ursula von der Leyen, delaying tariffs until July 9, reassured markets about potential trade agreements and mitigated fears of a global economic slowdown.

(With inputs from agencies.)