Euro rebounds from 2-1/2-week low against the U.S. dollar

The euro rebounded from a 2-1/2-week low against the U.S. dollar on Monday and sterling also advanced

The euro rebounded from a 2-1/2-week low against the U.S. dollar on Monday and sterling also advanced with Europe taking the lead in a renewed push for peace in Ukraine.

The Canadian dollar and Mexico peso rose after U.S. Commerce Secretary Howard Lutnick suggested tariffs set to take place on Tuesday may not be the full 25%.

Bitcoin surged back to the cusp of $95,000 as U.S. President Donald Trump, in a social media post, named the token among those to be included in a new strategic cryptocurrency reserve.

The euro rose 0.4% to $1.0415 early in the Asian morning, pulling away from Friday’s low of $1.0360, which it had hit after Trump and Ukrainian President Volodymyr Zelenskiy clashed in an extraordinary meeting at the Oval Office.

However, Zelenskiy received a warm welcome in Britain immediately afterwards, and UK Prime Minister Keir Starmer said on Sunday that European leaders had agreed to draw up a peace plan to present to Washington.

Sterling rose 0.2% to $1.2602.

“European momentum towards a Ukraine deal” is providing the euro with a lift, said Tapas Strickland, head of market economics at National Australia Bank.

Meanwhile, the Aussie and New Zealand dollars, which Strickland called “the whipping boys for global risk”, are bouncing off one-month lows.

The Aussie rose 0.2% to $0.6220, while New Zealand’s kiwi added 0.1% to $0.5606. The safe-haven yen was 0.1% weaker at 150.52 per dollar.

The Canadian dollar and Mexican peso each rose about 0.2% to be at C$1.4439 and 20.4891 pesos per U.S. dollar.

Lutnick said on the Fox News program ‘Sunday Morning Futures’ that tariff negotiations with Canada and Mexico are in a ‘fluid situation’, in the first indication from Trump’s administration that it may not impose the full threatened 25% tariffs.

Lutnick said Trump is expected to implement additional 10% levies on China on Tuesday.

On Friday, U.S. Treasury Secretary Scott Bessent encouraged Canada to follow Mexico in matching U.S. tariffs on Chinese goods, in what could be part of negotiations by the U.S. neighbours towards lowering their own U.S. duties.

The U.S. dollar index, which measures the currency against the euro, sterling, yen, Canadian dollar and two other major rivals, fell 0.1% to 107.21.

China’s yuan rose 0.1% to 7.2873 per dollar in offshore trading.

Commonwealth Bank of Australia analysts, however, expect the dollar to resume its rally this week.

‘The trade war is intensifying,’ the analysts said in a note to clients. ‘"Peak tariff" has not yet been reached.’

Bitcoin was trading at $92,905, up almost 11% from Friday, and earlier touched $94,852.56 for the first time since February 24.

At its lowest point on Friday, Bitcoin dipped to $78,273.03 for the first time since mid-November, but bounced back after Trump posted on social media that the token would be included in his planned cryptocurrency strategic reserve, along with ether, XRP, solana, and cardano.