At 6:00 PM (Lisbon time), the euro was trading at $1.1576, compared to $1.1606 at the same time on Friday.
The euro also depreciated against the British pound but slightly appreciated against the yen.
The European Central Bank (ECB) set the euro’s reference exchange rate at $1.1569.
Trade relations between the US and China are entering a new period of tension due to disagreements over rare earths and certain technological products.
The dollar weakened on Friday after US President Donald Trump renewed threats of 100% tariffs on China from November 1, but recovered after Trump suggested on social media that additional tariffs would not be enacted.
On Sunday, the US head of state adopted a more conciliatory tone in the trade conflict between Washington and Beijing, stating that the United States wants to “help China, not harm it.”
Investors remained cautious amid uncertainty over whether French Prime Minister Sébastien Lecornu can form a new government at a time when the far-right led by Marine Le Pen and the left by Jean-Luc Mélenchon warn of no-confidence motions.
Economically, the European Central Bank (ECB) warned today that eurozone banks are operating in a “challenging environment” due to geopolitical and trade tensions, noting that in a more adverse scenario, non-performing loans would rise to 2014 levels.
Currencies……………….Today………………Friday
Euro/Dollar……………1.1576………………1.1606
Euro/Pound……………0.86838…………….0.86961
Euro/Yen……………….176.27…………….176.26
Dollar/Yen……………..152.28…………….151.86
