The euro surged 2.2% against the dollar on Thursday to a six-month high of $1.1021—its strongest single-day gain since December 2015.
This reaction followed President Trump’s announcement of tougher-than-expected tariffs, including a 10% baseline on all US imports with higher rates for certain trading partners.
Investors fled the dollar for safe haven currencies, pushing the Japanese yen and Swiss franc to six-month highs against the greenback, while the British pound rose 1.3%.
The announcement rattled global markets, causing stocks to fall as investors moved toward bonds and gold. Deutsche Bank warned of a potential “crisis of confidence” in the US dollar, with analysts viewing the country-specific tariffs as a negotiation tactic that would create ongoing market uncertainty and make it difficult for trading partners to secure concessions.