The US dollar weakened against most major currencies as traders continued to assess the risk of an imminent trade war.

The Bloomberg Dollar Spot Index fell 0.4% to its lowest in more than a week, with the greenback continuing to weaken from its strongest level in more than two years hit on Monday.

Traders recalibrated their outlook for the world's reserve currency after US President Donald Trump delayed the imposition of levies on Mexico and Canada. That returned the focus to market fundamentals, with weaker US jobs data on Tuesday leading to increased bets on interest rate cuts.

"The broad dollar weakness continues to persist, thanks to tariff hedges for near-term moves being unwound," said Jordan Rochester, head of FICC strategy at Mizuho. "A one-month delay means it's not worth paying for it right now."(Newsmaker23)

Source: Bloomberg