Euro gets lift from German debt brake reform as currencies mired in trade war fallout
SINGAPORE - The euro rose to its strongest level in nearly four months on Wednesday after Germany's conservatives and the Social Democrats agreed on a historic debt overhaul, while trading in currencies elsewhere was volatile amid a flurry of headlines.
The loonie was last 0.12% weaker at C$1.4407, while the Mexican peso was recovering some of its losses and last stood at 20.5807 per dollar. The common currency drew support from news that the parties hoping to form Germany's next government agreed to create a 500 billion euro infrastructure fund and to overhaul borrowing rules in a tectonic spending shift to revamp the military and revive growth in Europe's largest economy.
The rise in the euro, meanwhile, kept the U.S. dollar subdued, as it struggled to recoup its losses from the previous session. "This 'macro over tariffs' narrative underscores the transition from U.S. exceptionalism to rising stagflation risks. Sure, tariff hikes are theoretically positive for the dollar. However, investors are looking beyond the short-term safe haven flows and are worried about a prolonged growth slowdown.
"Growth, inflation and fiscal spend targets were all pretty much as expected," said Charu Chanana, chief investment strategist at Saxo.
پاکستان تازہ ترین خبریں, پاکستان عنوانات
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