The euro surged to its highest level in nearly four years against the U.S. dollar, as global investors turned to safe-haven assets amid growing geopolitical tensions and uncertainty surrounding the U.S.-China trade deal.

Market sentiment shifted sharply on Thursday as geopolitical tensions and fragile trade negotiations drove investors toward safer currencies. The dollar weakened after the U.S. president announced plans to send letters to trade partners outlining new tariff rates, with the 90-day pause on “reciprocal” levies nearing its end next month.

This retreat of the dollar helped the euro climb to $1.1589 — its highest level since late 2021 — supported not only by rate expectations but also growing investor confidence in the eurozone’s economic stability. Safe-haven currencies also gained ground, with the Swiss franc and Japanese yen rising 0.8% and 0.6% respectively, after President Trump’s warnings about rising Middle East tensions and efforts to curb Iran’s nuclear ambitions fueled caution.

In Asia, the Chinese yuan edged up to 7.1818 per dollar, though its gains were capped by persistent U.S.-China friction.

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