The US dollar dropped by 1% on Monday following a report that President Donald Trump was considering imposing traffic solely on essential imports. This move could ease concerns for countries anticipating more widespread trade measures and restrictions.

According to The Washington Post, Trump's advisers were considering proposals to impose tariffs on all countries, but only in industries deemed vital to national or economic security.

The US dollar index that gauges the greenback versus its major pairs slumped by 1% at 107.86, lower the 2 year peak of 109.54 touched earlier on Thursday.

The predictions that Trump might impose broad traffic impacting countries globally jas put pressure in foreign currencies like the euro and China’s Yuan in the latest months while drove the greenback on the other hand to surge.

The EUR/USD ticked up on Monday to $1.0433, its peak in a week. It dropped to a 25-month trough of $1.0225 on Thursday.

GBP/USD added 0.95% at 1.2542.

AUD/USD advanced by 1.13% to %0.6284.

USD/CAD slumped by 0.96%.

CNY/USD rose by 0.5% at 7.325.

The onshore currency ended at 7.315, its weakest level in 16 months, partly due to worries about the potential economic impact of Trump's policies.

A broad consensus among economists is that sweeping tariffs could drive up U.S. inflation, potentially constraining the Federal Reserve’s capacity to reduce interest rates, thereby maintaining higher bond yields and strengthening the dollar.