The euro jumped against the dollar on Tuesday after U.S. President Donald Trump's trade advisor told the Financial Times that Germany was benefiting from a "grossly undervalued" euro.
Peter Navarro, the head of Trump’s new National Trade Council, told the paper, "A big obstacle to viewing TTIP (Transatlantic Trade and Investment Partnership) as a bilateral deal is Germany, which continues to exploit other countries in the EU as well as the U.S. with an 'implicit Deutsche Mark' that is grossly undervalued."
The euro climbed after the comments, reaching a five-day high of $1.0764 and knocking the dollar index down 0.4 percent to below 100 for the first time in five days.
"Euro/dollar received a significant push high in the European session by the head of the US National Trade Council, Peter Navarro, who accused Germany of being a currency manipulator," said Commonwealth Bank currency strategist Adam Myers.
The shared euro zone currency also rose versus sterling, albeit not to session peak, to 86.24 pence.