White House officials have sent conflicting signals over trade policy, resulting in wild market swings.

The Dow fell more than 300 points Monday as administration officials sought to clarify President Donald Trump's latest trade-related threat. As Markets continue to look for direction, some are actually optimistic that the US will build stronger trade relationships over time.

The dollar rose slightly against a basket of currencies on Tuesday, snapping a four-day losing streak as forex traders worried about mounting global trade tensions unwound bets on high-yielding currencies like the Australian and Canadian dollars, whose economies are heavily trade dependent.

EUR/USD fell half a percentage point to 1.1647. The greenback which increased 0.28 percent against the safe-haven Japanese yen on Monday, recouped losses to trade up 0.15 on Tuesday.

With tensions rising, the Chinese currency weakened to a six-month low as expectations grew that Beijing will let the yuan weaken more in coming days to soften the impact of tariffs by the United States.