# Euro and pound rise against dollar amid ‘Trumpcession’ fears

US currency has lost all the gains it enjoyed since Trump won election and hits lowest level since mid-October

The euro and the pound have risen against the dollar to their highest level since the week of the US election, as the greenback sank against other leading currencies amid .

The European single currency rose by a cent to $1.093, breaching the $1.09 barrier for the first time since Donald Trump won the presidential race. Sterling hit $1.2956, its highest since 8 November, with both currencies strengthening after the US president escalated his trade war with Canada .

The dollar lost 0.6% against a basket of leading currencies on Tuesday and, like the US stock market, has lost all its gains since Trump’s election victory. It hit its lowest level since the middle of October on Tuesday morning.

After a , there were further losses on Tuesday after Trump doubled the tariff being imposed on Canadian steel and aluminium tariffs on Wednesday to 50%.

The UK’s FTSE 100 share index lost 1.2%, or 104 points, to finish at 8,495 points, the lowest closing level since 16 January. Germany’s DAX and the French CAC index both shed about 1.3%.

“This latest escalation in trade tensions comes hot on the heels of a tumultuous Monday, which marked the worst day of 2025 for US markets. Investor fears were stoked by President Trump’s aggressive tariff policies targeting America’s largest trading partners, sending shockwaves through the financial landscape,” said Fawad Razaqzada, market analyst at City Index.

“The situation has left many observers questioning the broader implications of these trade policies on both the  and its international relationships,” Razaqzada added.

Before Trump’s announcement, there had been a mixed session in Asia-Pacific markets where Japan’s Nikkei fell by 0.6% and the South Korean market lost 1.3%, while Chinese exchanges closed moderately higher, up between 0.3% and 0.4%.

 after a slump in the electric carmaker’s share price, amid a  who has become one of the US president’s biggest allies. Tesla shares have more than halved in value since hitting a peak in December.

, Trump accused “Radical Left Lunatics” of “trying to illegally and collusively boycott” the business after Tesla shares tumbled by 15% on Monday, their biggest daily decline since 2020.

  
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