Dollar Extends Drop as EU Tariff Delay Boosts Risk-Sensitive FX

A gauge of the dollar slid toward its lowest level in nearly two years after US President Donald Trump’s decision to postpone higher tariffs on the European Union boosted other currencies with strong links to global trade.

The Bloomberg Dollar Spot Index fell as much as 0.4% on Monday and is headed toward a level unseen since July 2023. Currencies including the Australian and New Zealand dollars as well as the euro surged after President Donald Trump said he would extend the deadline for the EU to face 50% tariffs until July 9.