The dollar edged up on stronger US economic data, helping ease outsized appreciation in Asian currencies caused by optimism about trade deals with the US.
A gauge of the greenback rose 0.2% after data showed activity at US service providers accelerated in April.
The Taiwanese dollar dropped 0.1% following its biggest surge since the 1980s on Monday. The yen also weakened slightly.
Oil climbed from the lowest close in four years while gold rose 0.8% on demand from China. Equity-index futures for the S&P 500 dropped 0.4% after the index halted its longest rally in about 20 years. Contracts for European stocks also pointed to small declines, following Asian shares.
There was no cash trading in Treasuries during the Asian day as Japan was closed for a holiday.
President Donald Trump’s aggressive trade talk has rattled markets since he took office in January, undermining the dollar’s traditional haven role in times of stress and leading investors to allocate away from US assets.
Expectations of trade deals to lower US tariffs have led to a surge in some Asian currencies recently, prompting central bankers in Taiwan and Hong Kong to respond by intervening in the market.
