Euro Dips Amid Trump Tariff Fears

The euro fell to its lowest in seven months due to potential tariffs from Trump's administration. Reports suggested Trump might appoint Robert Lighthizer, known for his strong stance on trade. Amidst political uncertainty, the dollar strengthened, with Bitcoin also reaching new highs, anticipating favorable policies.

The euro has tumbled to its lowest point in nearly seven months against the U.S. dollar, driven by investor concerns over possible tariffs from the incoming Trump administration. Since Donald Trump's victory, economic uncertainty has intensified across the euro area, impacting its currency.

Further speculations emerged on Friday, with reports indicating Trump could bring back Robert Lighthizer to oversee trade policy—raising additional worries about the euro's strength. According to sources, Trump has yet to confirm this decision. Eugene Epstein from Moneycorp highlighted that any region under tariff threats struggles against the dollar.

While the euro retreated, the dollar index surpassed post-election highs as markets anticipated Trump's possible policies, including tariffs. Bitcoin also surged to record levels, buoyed by expectations of a cryptocurrency-friendly regulatory environment under Trump and supportive Congress candidates.

(With inputs from agencies.)