The U.S. dollar hovered near a five-month low on Monday, pressured by President Donald Trump’s trade policies and weak economic data. The euro remained strong after German parties agreed on a fiscal deal to boost defense spending and economic growth.
Goldman Sachs analysts noted two key market shifts: a downturn in U.S. assets due to tariff volatility and a fiscal boost in Germany, challenging the narrative of U.S. economic dominance. The euro traded at $1.0881, slightly below last week’s peak of $1.0947.
Germany’s incoming Chancellor Friedrich Merz secured Green Party backing for a major borrowing plan, including a €500 billion infrastructure fund. The deal is expected to pass the outgoing parliament next week.
The Japanese yen stayed near a five-month high, supported by hawkish Bank of Japan signals ahead of its Wednesday policy decision. The U.S. Federal Reserve is also expected to hold rates steady.
China’s yuan approached a four-month high in offshore trading, ahead of a key press conference on domestic consumption stimulus. The dollar index stood at 103.71, close to last Tuesday’s five-month low of 103.21, marking a 6% decline from its January peak.
U.S. consumer sentiment hit a two-and-a-half-year low in March, with inflation fears rising due to Trump’s tariffs. The dollar was stable at 148.70 yen, while the BOJ considers rate hikes amid rising wages.
China unveiled a plan to boost domestic consumption through income growth and childcare subsidies. The Australian dollar edged up to $0.6328, while the British pound slipped to $1.2927.
Bitcoin fell 0.5% to around $82,847.


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