Ammon News - The euro extended four-month highs to the U.S. dollar on Thursday, following a surge in European bond yields on Germany’s proposed 500 billion euro ($539.85 billion) infrastructure fund and overhaul in borrowing limits.

The greenback wallowed near a four-month trough against a basket of major peers as U.S. President Donald Trump’s administration gave a one-month reprieve on auto import levies to Canada and Mexico, again showing how rapidly the trade landscape can shift.

The risk-sensitive sterling and Australian dollar benefitted, with the British currency touching a four-month peak.

The Aussie reached a one-week high, buoyed additionally by solid economic growth at home and pledges of more stimulus from top trading partner China. The yuan traded offshore stood close to Wednesday’s nine-day high.

The euro was flat at $1.0792 in the Asian morning, after earlier touching $1.0803 for the first time since November 8.

The shared currency is up nearly 4% this week, on track for its best week since March 2020, although a policy decision from the European Central Bank later in the day will bear scrutiny.

A quarter-point rate cut is widely expected, but the focus will be on the scope and pace of easing beyond that.

Sterling edged as high as $1.2906, a level last seen on November 11.

The U.S. dollar index was little changed at 104.31, after easing to 104.25 overnight for the first time since November 8.

The dollar gained 0.2% against the safe-haven yen, however, to be last at 149.17 yen . It edged up 0.1% to 7.2438 yuan in offshore trading , but after falling 0.9% over the previous two sessions.

The Aussie gained 0.1% to $0.6345, the highest since February 26.

The U.S. currency eased 0.1% to C$1.4327 , the lowest since February 27, and fell by about the same margin to 20.3933 Mexican pesos. Business Recorder