The dollar traded near its lowest level in a week against a number of major currencies on Monday, with the yen and the Swiss franc, which is seen as a safe haven asset in times of uncertainty, due to escalating escalation in global trade tensions.
With an attitude of US government aggression that expanded trade wars to countries outside of China, and China which threatened to give more countermeasures over the weekend, the market began to anticipate a sharp slowdown in global growth. The fear has been reflected in an 11% decline in oil prices since Thursday.
US and Mexican officials are preparing to hold talks later tonight after US President Donald Trump promises to impose a rate increase on all Mexican imported goods in the increasingly tense tension about migration.
Chris Weston, head of research at forex broker Pepperstone, said that the issue related to Mexico was quite impressive. Nobody really hopes for the same thing as China. Mexico is the largest US trading partner.