The dollar slipped lower against a basket of the other major currencies on Tuesday as rising global trade tensions continued to weigh on market sentiment.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.18% to 89.53 by 03:20 AM ET (07:20 AM GMT).
Investors remained on edge after China imposed extra tariffs on certain U.S. imports, escalating a trade dispute between the world’s two largest economies and stoking concerns about the impact on global growth.
The Trump administration is expected later this week to publish a list of Chinese goods that could be subjected to new U.S. tariffs.
The dollar was fractionally higher against the yen, with USD/JPY last at 105.96.
The dollar struggled to gain ground against the yen after three days of declines amid a selloff in tech shares that sent Wall Street tumbling and resurgent worries over a trade war.
The Japanese yen, typically viewed as a safe-haven currency, tends to be sought out by investors during times of political or economic uncertainty.
The euro moved higher against the dollar, with EUR/USD rising 0.26% to 1.2333.
The pound was also higher against the dollar, with GBP/USD advancing 0.23% to 1.4077.
Meanwhile, the Australian dollar was higher, with AUD/USD climbing 0.52% to 0.7702.
The Aussie showed little reaction after the Reserve Bank of Australia held interest rates at a record low 1.5% on Tuesday, in what was a widely anticipated decision.
