Trump's Tariff Threats Stir Forex, Bitcoin Soars to New Heights

The euro dropped to a three-week low on Monday, partially recovering later, as the dollar edged up following U.S. President Donald Trump's latest tariff threat. Trump suggested a 30% tariff on imports from two major trading partners starting August 1. Analysts noted the prevalent TACO (Trump Always Chickens Out) trade limiting major forex moves.

Significant activity was observed in the cryptocurrency market, with Bitcoin reaching an all-time high, surpassing $120,000. Investors anticipate favorable policy outcomes for the industry this week, with Bitcoin trading 2.9% higher at $122,549.70 and Ether gaining 1.5% to $3,039.48.

Trump announced these tariffs in letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum, shared on his Truth Social platform. The European Union and Mexico criticized the tariffs as unfair, with the EU opting to extend its suspension of countermeasures and pursuing a negotiated settlement.

(With inputs from agencies.)