Geopolitical tensions between the United States and China have spilled over into currency markets causing most major currencies to 'give in' to the greenback.
Reports of US House Speaker Nancy Pelosi's plans to visit Taiwan have pushed safe-havens to dominate markets throughout the Asian session.
China has previously repeatedly warned America that if Pelosi insists on going to Taiwan, they will take harsh measures against her.
It is well known that China claims Taiwan as part of it and that any intervention from the US could threaten the relationship between the two countries.
Asian and European stock markets were in a sea of red following the report, with the Shanghai composite index losing more than 2%, while the Euro Stoxx 600 index slipped 0.7%.
In reaction, the risk-sensitive currencies of the Aussie dollar and the New Zealand dollar also plunged lower, where the Aussie dollar was also affected by signals from the Reserve Bank of Australia (RBA) that indicated it would slow its interest rate hikes.
Ahead of the opening of the New York session, the US JOLTS Job Openings data will be the only one to be published with investors also paying attention to geopolitical developments.
Against major currencies, the dollar index traded slightly higher at 105.50 but remained around the lows.
The yen is on track for its biggest gain since the coronavirus crisis in March 2020 as investors rush to seek shelter in safer assets.
