The dollar fell sharply Tuesday as trade tensions between the US and China intensified. The fall reversed the gains prompted by Friday’s stronger-than-expected non-farm payrolls data.

China Tuesday declined an invitation to take part in the G7 meeting to be held in Washington this weekend. This followed earlier comments from the country’s commerce ministry that it was “strongly displeased” that the US had complained to the World Trade Organisation over what was described as Beijing’s failure to protect intellectual property rights.