On Tuesday, the dollar went higher from its lowest level in more than seven days versus a collection of currencies. The dollar index added 0.1 percent to its value and settled at 92.647 after pulling away from 92.243, the lowest level since May 2. 10-year U.S. Treasury yield went up approximately 1 basis point in Asian trade to 3.001 percent following its rise of 2 basis points on Monday. This rise gave the greenback a much needed boost.
The greenback lost momentum in the last couple of days after hitting a 4-month index high of 93.416 during the previous week. Weak U.S. consumer price data caused the dollar to lose momentum, which raised doubts as to whether the Fed would go for a rate hike 4 times in 2018.
Markets in Asia pulled back on Tuesday as investors chose to exercise caution with the release of mediocre economic data in China. They are currently waiting for progress on the U.S. - China trade negotiations and North Korea.
Japan’s Nikkei fell 0.1 percent, slowing down from its three month peak. MSCI largest index of Asia Pacific shares went down by 0.8 percent. The Hang Seng index went lower by 0.9 percent and brought to a halt five consecutive days of winning. Shanghai Composite closed 0.2 percent lower.