Market News

By Kevin Buckland and Amanda Cooper

Summary

• Risk-sensitive currencies gain as growth worries recede
• Dollar assets also pressured by Trump's sweeping tax bill
• U.S. currency even loses ground to safe-haven yen, franc

TOKYO/LONDON, May 26 (Reuters) - The euro hit a one-month high against the dollar on Monday, after U.S. President Donald Trumpbacked 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 decline against a broad swathe of other currencies as Trump's policy reversals, as well as his sweeping spending and tax-cut bill currently in legislation, turned investors off from U.S. assets.

"The 'Sell America' theme, which obviously was the dominant theme back in April, is back on show," said Ray Attrill, head of FX research at National Australia Bank.
"Markets have probably taken the view - and probably rightly so - that where we land eventually on a tariff situation between the U.S. and the EU is not going to be at 50%, but how we get there is frankly anybody's guess at the moment."