The U.S. dollar was trading near one-week lows against a currency basket on Monday, with the yen and the Swiss franc, seen as safe havens in time of uncertainty, gaining ground as global trade tensions escalated.
With the U.S. administration's combative stance on trade widening to countries beyond China, and with China threatening more countermeasures over the weekend, markets have started to price in a sharp slowdown in global growth. Those fears have been reflected in an 11% drop in the price of oil since Thursday.
The dollar was down 0.1% against the Swiss franc to 0.9991 by 02:47 ET (06:48 GMT) and was at 108.35 against the yen after brushing a four-month low of 108.08 overnight.
On Friday, the Japanese currency had booked its sharpest daily rise in more than two years, climbing a little over 1.2% during the session.
The yen is considered a safe haven asset in times of geopolitical and financial turmoil as Japan is the world's biggest creditor nation.
Source : Investing.com