FX.co ★ Dollar Hits 1-Month Low as Trump Delays EU Tariffs

On Monday, the US dollar index dropped below 99, reaching its lowest point in over a month, as the euro appreciated. This currency movement followed President Donald Trump's decision to delay imposing 50% tariffs on the European Union, pushing the deadline to July 9. Trump made the announcement on Truth Social after a discussion with European Commission President Ursula von der Leyen, who described the dialogue as "constructive" but highlighted the need for more time to "forge a comprehensive agreement." Adding to market apprehension, Trump threatened a 25% tariff on iPhones sold in the US that aren't manufactured domestically, exacerbating fears of escalating trade tensions. The dollar continues to feel the pressure amid rising uncertainty surrounding Trump's evolving trade policies, undermining investor confidence in US assets. In a separate development, Trump suggested that his extensive spending and tax reduction proposal might face "substantial" modifications in the Senate, indicating that fiscal issues are gaining traction in financial markets.