Published by Global Banking & Finance Review®
Posted on March 11, 2025
3 min readLast updated: January 24, 2026
The euro surged to a five-month high on Ukraine ceasefire hopes, while the Canadian dollar rebounded after Trump's tariffs. US dollar weakened against major currencies.
By Chibuike Oguh and Yadarisa Shabong
NEW YORK (Reuters) -The euro hit a five-month high on Tuesday after Ukraine agreed to a 30-day ceasefire proposal, while the dollar rose to a one-week high before weakening against the Canadian dollar following U.S. President Donald Trump's additional tariffs on Canada.
Trump doubled his planned tariff on all steel and aluminum imports from Canada to 50% after Ontario province imposed a 25% tariff on electricity sent to the U.S.
Ukraine agreed to accept an immediate 30-day ceasefire in the conflict with Russia during talks with U.S. officials in Saudi Arabia. U.S. Secretary of State Marco Rubio said he would now take the offer to the Russians, and that the ball is in Moscow's court.
The European single currency had been trading at a months-long high since last week on expectations of increased defense spending in Germany, the continent's largest economy.
The U.S. dollar rose to C$1.4521 against the Canadian dollar, its highest since March 4. It later lost ground and traded down 0.28% to C$1.4396.
The euro rose as high as $1.0947, a level last seen in October. It was last up 0.86% and has gained more than 5% this month. The euro jumped to its highest since January, of 161.78 yen, following Ukraine's agreement to a ceasefire. It was last up 1.29% at 161.57 yen.
Increased European defense spending and the prospect of a ceasefire in Ukraine are positive for the euro, said Juan Perez, director of trading at Monex USA. "Adding the ceasefire, even if it's just for a month, and the idea that something concrete can actually happen between Russia and Ukraine is an excellent sign for the euro."
The U.S. dollar remains weaker against its major peers as trade and growth concerns weigh on the greenback.
Wall Street's main indexes, the benchmark S&P 500, Nasdaq and the Dow finished down on Tuesday.
Against the Swiss franc, the dollar strengthened 0.1% to 0.882 but is down 2.42% for the month. Against the Japanese yen, the dollar strengthened 0.31% to 147.72. The greenback has lost 1.93% against the yen so far in March.
The dollar index, which measures the greenback against a basket of currencies including the yen and euro, was on track for its seventh straight loss. It fell 0.57% to 103.27.
"Everything that was vulnerable continues to look vulnerable: German yields keep going up and U.S. equities continue to look soft," said Steve Englander, global head of G10 FX Research and North American Macro Strategy at Standard Chartered Bank's NY Branch.
(Reporting by Yadarisa Shabong in Bengaluru and Tom Westbrook in Singapore; Editing by Ed Osmond, Deepa Babington, Tomasz Janowski, Rod Nickel and Richard Chang)
The euro rose to a five-month high after Ukraine agreed to a 30-day ceasefire proposal, coupled with expectations of increased defense spending in Germany.
The U.S. dollar initially rose to C$1.4521 against the Canadian dollar but later weakened, trading down 0.28% to C$1.4396.
Trump's decision to double tariffs on steel and aluminum imports from Canada contributed to fluctuations in the Canadian dollar's value.
The rise of the euro is seen as positive due to increased European defense spending and the potential for a ceasefire in Ukraine, which may stabilize the currency.
The dollar index, which measures the greenback against a basket of currencies, was on track for its seventh straight loss, indicating ongoing weakness in the U.S. dollar.
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