FOREX-Euro rebounds on Europe's Ukraine peace push; bitcoin rallies

Updates prices ahead of European market open

By Kevin Buckland

TOKYO, March 3 (Reuters) - The euro rebounded from a 2-1/2-week low against the U.S. dollar on Monday and sterling also advanced with Europe taking the lead in a renewed push for peace in Ukraine.

The Canadian dollar and Mexico peso rose after U.S. Commerce Secretary Howard Lutnick suggested tariffs set to take effect on Tuesday may not be the full 25%.

Bitcoin surged back to the cusp of $95,000 as U.S. President Donald Trump, in a social media post, named the token as among those to be included in a new strategic cryptocurrency reserve.

The euro EUR=EBS climbed 0.4% to $1.0417 as of the Asian afternoon, pulling away from Friday's low of $1.0360, which it had hit after Trump and Ukrainian President Volodymyr Zelenskiy clashed in an extraordinary meeting at the Oval Office.

However, Zelenskiy received a warm welcome in Britain immediately afterwards, and UK Prime Minister Keir Starmer said on Sunday that European leaders had agreed to draw up a peace plan to present to Washington.

Sterling GBP=D3 gained 0.2% to $1.2604.

"European momentum towards a Ukraine deal" is providing the euro with a lift, said Tapas Strickland, head of market economics at National Australia Bank.

Meanwhile, the Aussie and New Zealand dollars, which Strickland called "the whipping boys for global risk", are bouncing off one-month lows.

The Aussie AUD=D3 rose 0.2% to $0.6219, while New Zealand's kiwi NZD=D3 added 0.1% to $0.5602.

The yen edged up 0.1% to 150.46 per dollar JPY=EBS.

The Canadian dollar CAD=D3 and Mexican peso MXN= each gained about 0.2% to be at C$1.4443 and 20.49 pesos per U.S. dollar.

Lutnick said on the Fox News program "Sunday Morning Futures" that negotiations with Canada and Mexico are in a "fluid situation", in the first indication from Trump's administration that it may not impose the full threatened 25% tariffs.

Lutnick said Trump is expected to implement additional 10% levies on China on Tuesday.

On Friday, U.S. Treasury Secretary Scott Bessent encouraged Canada to follow Mexico in matching U.S. tariffs on Chinese goods, in what could be part of negotiations by the U.S. neighbours towards lowering their own U.S. duties.

China's yuan was flat at 7.2948 per dollar in offshore trading CNH=D3.

The U.S. dollar index =USD - which measures the currency against the euro, sterling, yen, Canadian dollar and two other major rivals - eased 0.1% to 107.21.

Commonwealth Bank of Australia analysts, however, expect the dollar to resume its rally this week.

"The trade war is intensifying," they wrote in a client note. "'Peak tariff' has not yet been reached."

Bitcoin BTC= was changing hands at $93,052.61, up more than 10% from Friday, and earlier reached $94,852.56 for the first time since February 24.

At its lowest point on Friday, Bitcoin dipped to $78,273.03 for the first time since mid-November, but bounced back after Trump posted on social media that the token would be included in his planned cryptocurrency strategic reserve, along with ether ETH=, XRP XRP=, solana SOL=CCCL, and cardano ADA=CCCL.

The names had not previously been announced, and all rose on the news.

Trump's post was "clearly a positive shock to the crypto scene and a shot in the arm for a market desperately in need of a catalyst to alter the bear trend lower," said Chris Weston, head of research at Australian online broker Pepperstone, adding that it was possible the rally will extend into the first White House Crypto Summit that Trump is hosting on Friday.