• The dollar fell against the yen in Asian trading on Tuesday, as concerns over tensions with North Korea and Syria weighed on U.S. Treasury yields and offset expectations of U.S. interest rate hikes.
The dollar extended earlier losses against the yen, slipping 0.3 percent to 110.63 Japanese yen JPY=, moving further away from its overnight high of 111.57. It remained solidly in the 110.11-112.19 range in which it has traded since late March
The euro inched 0.1 percent lower to $1.0588 EUR= after plumbing $1.0568 overnight, its lowest level since March 9, amid uncertainty ahead of France's presidential election.
• Bank of Japan Governor Haruhiko Kuroda said on Tuesday the central bank is aiming for a moderate acceleration of inflation driven by increases in wages and corporate earnings.
One option the central bank could take when it decides to unwind its current quantitative easing policy would be to raise interest rates on excess reserves.
Kuroda, speaking in the upper house of parliament, also said he felt the BOJ would be able to manage its exit smoothly, including reducing the size of its balance sheet.
The governor said it was too early to say specifically what the BOJ will do with the government debt on its balance sheet when it has to exit its ultra-easy policy.
• South Korea's acting president warned on Tuesday of "greater provocations" by North Korea as tension on the Korean peninsula rises over concern the North may conduct a test of its military hardware in coming days.
A U.S. Navy strike group led by a nuclear-powered aircraft carrier is en route to the western Pacific with talk of military action by the United States gaining traction following its strikes last week against Syria.
South Korean acting President Hwang Kyo-ahn ordered the military to intensify monitoring of the North's activities and to ensure close communication with the ally the United States.
"It is possible the North may wage greater provocations such as a nuclear test timed with various anniversaries including the Supreme People's Assembly," said Hwang, acting leader since former President Park Geun-hye was removed over a graft scandal.
• U.S. President Donald Trump will meet with about 20 chief executives on Tuesday as he works to gain support for a $1 trillion infrastructure program, tax reform and other administration priorities, said White House spokesman Sean Spicer.
Trump will meet with the heads of General Motors Co (GM.N), International Business Machines Corp (IBM.N) and Wal-Mart Stores Inc (WMT.N), a government official briefed on the matter said.
• The Group of Seven major global powers were joined by Middle East allies on Tuesday in a push to isolate Syrian President Bashar al-Assad, hours before the U.S. secretary of state flies to Moscow, Assad's top backer.
G7 foreign ministers sat down early on Tuesday with their counterparts from Turkey, Saudi Arabia, United Arab Emirates, Jordan and Qatar - all of whom oppose Assad's rule - to discuss the six-year-old civil war in Syria.
Pressure is building on Russia to break its ties with Assad, who stands accused of launching a nerve gas attack on a rebel-held town last week.
On Monday, British Prime Minister Theresa May spoke to U.S. President Donald Trump, with both agreeing that there was "a window of opportunity" to persuade Russia to break ties with Assad, May's office said.
Also on Monday, Britain and Canada said sanctions could be tightened on Moscow if it continued to back Assad. Later in the day, Trump spoke by phone with German Chancellor Angela Merkel about the U.S. strike last week and thanked her for her support.
· North Korea has warned the US that it is "ready for war" and there would be "catastrophic" consequences if it is forced to defend itself from any military provocations.
• Crude oil eased from a five-week high on Tuesday as rising U.S. shale oil production offset concerns over geopolitical tensions in the Middle East and output cuts being made to support prices.
The international benchmark for oil prices, Brent crude futures LCOc1, were down 20 cents, or 0.36 percent, from its previous close at $55.78 per barrel at 0702 GMT. Earlier, Brent had climbed to its highest since March 7 at $56.16 a barrel.
U.S. West Texas Intermediate (WTI) CLc1 gave up 15 cents, or 0.3 percent, to $52.93 a barrel, after having touched a five-week high of $53.23 a barrel.
Reference: Reuters,USA Today
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