• The dollar hit a one-month high against the yen on Tuesday, lifted by Treasury yields which surged after U.S. Treasury Secretary Steven Mnuchin commented on the possibility of ultra long-term bond issuance.
The greenback last traded at 111.900 yen JPY= after touching 111.985, its strongest since March 31.
The euro, meanwhile, held its ground against the dollar. The common currency was up 0.15 percent at $1.0914 EUR=, adding to modest gains made overnight.
It was in reach of a 5-1/2-month high of $1.0951 scaled last week on relief after Emmanuel Macron's victory against anti-euro nationalist Marine Le Pen in the first round of France's presidential elections. The runoff vote is on May 7.
The U.S. dollar index .DXY against a basket of major currencies was effectively flat at 99.050 after posting a small gain overnight.
• China's factory sector lost momentum in April, with growth slowing to its weakest pace in seven months as domestic and export demand faltered, a private survey showed on Tuesday.
The findings echoed those in official manufacturing and service sector data on Sunday, reinforcing views that China's economic growth remains solid but is starting to moderate after a surprisingly strong start to the year.
• The Caixin/Markit Manufacturing Purchasing Managers' index (PMI) fell to 50.3 in April, missing economist forecasts' of 51.0 and a significant decline from March's 51.2.
• The U.S. Federal Reserve is expected to hold interest rates steady at its meeting this week as it pauses to parse more economic data but may hint it is on track for an increase in June.
The central bank is scheduled to release its policy decision at 2 p.m. EDT (1800 GMT) on Wednesday at the conclusion of its two-day meeting. Fed Chair Janet Yellen is not due to hold a press conference.
• North Korea accused the United States on Tuesday of pushing the Korean peninsula to the brink of nuclear war after a pair of strategic U.S. bombers flew over the area in a training drill with the South Korean air force.
• France will elect its next president in six days, and the latest polls indicate the winner could very well be upstart En Marche candidate Emmanuel Macron over National Front leader Marine Le Pen. A recent poll also shows that no matter who wins, the French are concerned that neither would be able to address key issues plaguing the democratic stronghold.
• Macron holds a roughly 20-point advantage, at 60 percent support to Le Pen’s 40 percent, according to BBC News’s composite of the five most recent national polls. But many voters are still undecided, meaning Le Pen, who’s divided the country with her anti-immigration stance, still has a chance.
• Bank of Japan policymakers agreed to closely monitor consumer prices because they currently lack upward momentum, minutes of the central bank's March 15-16 policy meeting showed on Tuesday.
· German manufacturing activity held near a six-year high at the start of the second quarter, a survey showed on Tuesday, suggesting factories will continue to support economic growth in Europe's biggest economy.
Markit's Purchasing Managers' Index (PMI) for manufacturing, which accounts for about a fifth of the economy, inched down to 58.2 in April from March's 71-month high of 58.3.
· Oil prices edged down on Tuesday, as rising output stoked worries that OPEC-led production cuts may not significantly tighten a bloated market.
London Brent crude for July delivery LCOc1 was down 18 cents, or 0.4 percent, at $51.34 by 0631 GMT, after settling down 53 cents on Monday. Brent hit a one-month low of $50.45 last week after the restart of two key Libyan oilfields. NYMEX crude for June delivery CLc1 was down 20 cents, or 0.4 percent, at $48.64.
Reference: Reuters
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