The euro rose 0.6 percent to $1.0439 on Monday, rebounding from Friday's low of $1.0359, as investors responded to reports of a potential Ukraine peace deal and plans for increased fiscal spending in the eurozone. UK Prime Minister Keir Starmer said European leaders had agreed to draft a peace plan to present to Washington. Meanwhile, Germany's incoming government is reportedly considering two special funds worth hundreds of billions of euros for defence and infrastructure, according to Reuters sources. "A paradigm shift appears to be taking place in Germany," Deutsche Bank's chief economist Robin Winkler said, noting that the proposed spending could rival post-reunification investments in East Germany. The US dollar index slipped 0.25 per cent to 107.03. ING forex strategist Francesco Pesole said dollar strength could weaken if US tariffs are delayed and economic data softens. Bitcoin surged to the cusp of $95,000 after US President Donald Trump confirmed the token's inclusion in a new strategic cryptocurrency reserve. It was last trading at $92,077. The Canadian dollar and Mexican peso rose 0.30 per cent, trading at C$1.4428 and 20.445 pesos per US dollar, respectively, as US Treasury Secretary Scott Bessent urged Canada to follow Mexico in matching tariffs on Chinese goods. Attribution: Reuters Subediting: Y.Yasser
