The euro and pound held near multi-month highs against the dollar on Thursday, with the US currency under pressure from economic slowdown fears and uncertainty over Germany's fiscal reform debate. The euro traded at $1.0880, near a five-month peak, while sterling was steady at $1.2963. Germany's proposed €500 billion infrastructure fund and borrowing rule changes have fuelled optimism about stronger economic growth in Europe's largest economy. Meanwhile, the yen remained stable at 148.115 per dollar, as Bank of Japan Governor Kazuo Ueda reaffirmed plans to reduce the central bank's balance sheet. Markets expect a 25-basis-point rate hike by the BOJ in the third quarter. The dollar index edged up to 103.7 but remained near five-month lows. Trade tensions persisted, with President Trump threatening new tariffs against the EU and Canada. The Swiss franc hovered near a three-month high at 0.882 per dollar, while the Canadian dollar held steady at 1.4368 after the Bank of Canada cut rates by 25 basis points on Wednesday. Attribution: Reuters Subediting: M. S. Salama
