The euro fell to a three-week low early on Monday while the dollar made slight gains after US president Donald Trump threatened to impose a 30 per cent tariff on imports from two of the largest US trading partners beginning August 1st.

In cryptocurrencies, bitcoin scaled a record high and surpassed the $120,000 (€102,865) mark, as investors bet on long-sought policy wins for the industry this week.

The world’s largest cryptocurrency last traded 2.6 per cent higher at $122,248.59, while ether gained 2 per cent to $3,052.

Mr Trump on Saturday announced the latest tariffs in separate letters to European Commission president Ursula von der Leyen and Mexican president Claudia Sheinbaum that were posted on his Truth Social media site.

Both the European Union and Mexico described the tariffs as unfair and disruptive, while the EU said it would extend its suspension of countermeasures to US tariffs until early August and continue to press for a negotiated settlement.

Reaction in the currency market to Mr Trump’s latest tariff threats was largely muted in Asian trade, though the euro did slip to a roughly three-week low early in the session.

The single currency later regained some ground and last traded 0.13 per cent lower at $1.1676.

Against the Mexican peso, the dollar rose 0.28 per cent to 18.6763.

Elsewhere, sterling was down 0.15 per cent to $1.3470, while the Japanese yen rose marginally to 147.31 per dollar.

Investors have grown increasingly desensitised to Mr Trump’s slew of tariff threats, with his latest upheaval in the global trade landscape doing little to prevent US stocks from scaling record highs and offering just a slight boost to the dollar.

“It seems like financial markets have become insensitive to president Trump’s tariff threats now, after so many of them in the past few months,” said Carol Kong, a currency strategist at Commonwealth Bank of Australia.

“Judging by the limited market reaction, markets might think that the latest threat from Trump is actually a manoeuvre to extract more concessions.”

In other currencies, the Australian dollar fell 0.12 per cent to $0.6566, while the New Zealand dollar slid 0.37 per cent to $0.5987.

Outside of tariff news, Mr Trump on Sunday said that it would be a “great thing” if Federal Reserve chair Jerome Powell stepped down, again threatening to undermine the central bank’s independence as he called for interest rates to be lowered.

Traders could get a better clue on the future path for US rates when inflation data for June comes due on Tuesday, where expectations are for US consumer prices to have picked up slightly last month.

Markets are currently pricing in just over 50 basis points worth of Fed easing by December.

In Asia, data on Monday showed China’s exports regained momentum in June while imports rebounded, as exporters rushed out shipments to capitalise on a fragile tariff truce between Beijing and Washington ahead of Mr Trump’s August deal deadline.

Still, the figures did little to move the yuan, with the onshore unit little changed at 7.1706 per dollar. Its offshore counterpart edged up slightly to 7.1710 per dollar.

Investors will be eyeing the release of Chinese gross domestic product figures on Tuesday next for greater clarity on the health of the world’s second-largest economy.

Growth in China is widely expected to have slowed down in the second quarter from a solid start to the year as trade tension with the United States added to deflationary pressure. – Reuters