Dollar surges amid fears that U.S.-China trade war will re-ignite

The dollar surged on Monday against major currencies due to fears of a possible re-ignition of the U.S.-China trade war.

President Donald Trump and Secretary of State Mike Pompeo have blamed China for the pandemic. Pompeo said that there was enough evidence that the novel coronavirus strain originated in a laboratory in Wuhan.

The euro fell 0.4%, at $1.0932. The sterling lost 0.4%, at $1.2442.

The Swedish crown was down 0.6%, at 9.8995 against the dollar. The Norwegian crown fell 0.8%, at $10.3975.

In the offshore market, the Chinese yuan dropped to a six-week low of 7.1555 against the dollar. 

Analysts say that the dollar/yuan pair would see more volatility in the coming weeks.

The Japanese yen gained 0.2%, at 106.71 against the dollar.