Investors are flocking to sage havens assets including gold, Swiss franc and Japanese yen.

On Monday, investors flocked to safe haven assets following a sharp re-escalation in the U.S.-China trade war.

With reacting to U.S. tariffs and imposing its own, which attracted another round of U.S. tariffs, the Renminbi fell off a cliff in offshore trade, weighed by expectations of a that the Chinese economy will slowdown and stumble.

Investors flocked to safe haven assets, such as the Japanese yen, Swiss franc and gold, in early Asian trade.

Financial markets could potentially see a choppy waters in the near future, as investors are likely to relocate funds from stocks to less risky assets, such as debt, gold and safe-haven currencies.

“Speculators came into the market very early to put heavy pressure on dollar/yen,” said Yukio Ishizuki, foreign exchange strategist at Daiwa Securities in Tokyo. “The fact that the offshore yuan is down this much shows speculators have gotten a little wild. The trade war is driving all these moves, and I don’t see this ending anytime soon.”

The Japanese yen surged to 104.46 per dollar, its highest level since a flash crash this January, before paring gains to 104.70, up more than 0.5%.

In the offshore market, the dollar rose by 0.6% to 7.1850 yuan, its highest on record.

The yen also surged by around 1% against the Australian and New Zealand dollar.

The dollar fell by 0.2% to 0.9729 against the Swiss franc.

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