The dollar weakened for a fifth straight day and the euro soared to the highest since November amid a report that US President Donald Trump revealed classified information to a Russian diplomat. The euro jumped to the highest level since Trump’s election, while the Japanese yen also strengthened with the Mexican peso. The euro climbed 0.5% to $1.1028, the most since 9 November. Trump’s top foreign policy advisers raced to contain political damage from a report saying he revealed sensitive classified information to Russia’s top diplomat during an Oval Office meeting last week. The president is already fending off questions about his firing of FBI director James Comey, and the controversies are raising concerns over Trump’s ability to deliver on his economic agenda. Bloomberg
Hedge funds are dumping gold bets
Expectations of another boost in US interest rates are wearing down gold bulls. Hedge funds and other large speculators cut long positions in bullion futures and options by the most in more than eight years last week. Traders have been exiting as Federal Reserve officials signal higher borrowing costs this year and political uncertainty in Europe eases, reducing demand for gold as a store of value. Bloomberg
China increases US treasury holdings
China increased its holdings of US Treasuries by the most in two years, a sign that the world’s second-biggest economy is stabilizing and stricter capital controls have helped to stem capital flight. The nation raised its ownership of US government bonds, notes and bills by $27.9 billion to $1.09 trillion in March, the biggest increase since March 2015, according to a monthly treasury department report released on Monday. That means China remains the second-largest foreign holder of American debt. Adding the $3.7 billion surge in Belgium’s ownership, which is often seen as a home to China’s custodial accounts, the total increase was the biggest since 2014. Bloomberg
