Early on Tuesday, the US dollar is trading weaker against other major currencies over worries that trade tensions between the US and China could escalate and the trade deal could get further delayed. At the time of writing, the US dollar index DXY is trading at around 98.24.

After a few weeks of positive statements indicating progress in negotiations towards an interim trade deal, the US-China trade war looks set to extend longer as Trump shot down proposals to remove some tariffs on Chinese goods, as suggested by trade officials of both nations. According to Trump, negotiations are progressing well, but at a slower than expected pace.

The mood in the markets is confused currently over lack of clarity on the trade war front. This has enhanced a risk-off sentiment in the markets, weakening the US dollar and heightening the safe haven appeal. Protests turning violent in Hong Kong have also caused markets to tense, driving the US dollar weaker, especially against safe haven currencies like the Japanese yen and the Swiss franc.