The euro edged higher to around $1.162, recovering from an earlier three-month low of $1.158, as investor confidence in the US dollar weakened following fresh tariff threats from President Donald Trump. Trump has warned of imposing 10% tariffs on several European countries in an effort to pressure Denmark into selling Greenland to the US. However, gains in the common currency were capped by growing concerns over the serious political and geopolitical ramifications of the move. Analysts warn that any attempt to seize Greenland could cause irreparable damage to NATO and strain transatlantic relations. The UK and Germany, which have the largest export exposure to the US, would be the most affected: a 10% tariff could shave roughly 0.1% off GDP, while a 25% levy could reduce output by 0.2%–0.3%. Meanwhile, the EU is considering far-reaching retaliatory measures, including up to €93 billion in tariffs on US goods, aimed at deterring President Trump from pursuing control over Greenland.