Dollar edges down as U.S. Treasury yields slip on geopolitical fears

The dollar fell 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 index, which gauges the U.S. currency against a basket of six major peers, edged down 0.1 percent to 101.950 .DXY.

The dollar dropped 0.2 percent to 110.68 Japanese yen JPY=, moving 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.

China and South Korea agreed on Monday to impose tougher sanctions on North Korea if it carries out nuclear or long-range missile tests, a senior official in Seoul said, as a U.S. Navy strike group headed to the region in a show of force.

The possibility of U.S. military action against North Korea in response to such tests gained traction following last week's U.S. strikes against Syria in retaliation for a chemical weapons attack on civilians by President Bashar al-Assad's forces.

The benchmark 10-year yield fell to 2.353 percent US10YT=RR in Asian trading, from its U.S. close of 2.361 percent on Monday.

"U.S. interest rate increases and the Fed's balance sheet reduction remain key factors on which people are taking dollar positions," said Mitsuo Imaizumi, Tokyo-based chief foreign-exchange strategist for Daiwa Securities.

"But there is position-squaring whenever risk aversion rises," he said. "Whenever there is any news about terrorism, or Syria, or North Korea, there is some adjustment of positions."

The Federal Reserve's plans to raise U.S. interest rates gradually are aimed at sustaining full employment and near-2-percent inflation without letting the economy overheat, Fed Chair Janet Yellen said on Monday, reinforcing the central bank's message and offering no fresh clues on the policy outlook.

The euro was steady on the day at to $1.0599 EUR= after plumbing $1.0568 overnight, its lowest level since March 9, amid uncertainty ahead of France's upcoming presidential election.

Opinion polls indicate far-right candidate Marine Le Pen and centrist Emmanuel Macron will come out ahead in the April 23 first round and make it to the May 7 run-off, with Macron winning. But leftist firebrand Jean-Luc Melenchon has seen his ratings surge and conservative Francois Fillon, damaged by a nepotism scandal, has also regained some lost ground.

Le Pen drew protests from her election rivals and the Israeli government on Monday by denying the French state's responsibility for a mass arrest of Jews in Paris during the second World War.

Reuters

Other News

Private economic sector poised for breakthrough growth

Private economic sector poised for breakthrough growth

More than a year after the Politburo's Resolution No. 68-NQ/TW on private sector development came into effect, expectations now extend beyond increasing the number of enterprises. The goal is to build a stronger business community with greater resilience, larger ambitions and the capacity to compete in global supply chains.

Vietnam remains ASEAN growth leader in 2026 despite global headwinds: WB

Vietnam remains ASEAN growth leader in 2026 despite global headwinds: WB

Vietnam is expected to remain one of ASEAN’s fastest-growing economies in 2026, supported by resilient exports, strong investment inflows and an ambitious reform agenda, despite mounting global uncertainties, according to the World Bank’s latest Vietnam Economic Update released on May 15.

Ministry establishes monitoring framework for carbon market

Ministry establishes monitoring framework for carbon market

Under a new circular, the exchange of greenhouse gas emission quotas and carbon credits is conducted on the domestic carbon credit exchange through the carbon trading system, which is interconnected with the national registration system.

Biofuel ready for nationwide rollout

Biofuel ready for nationwide rollout

For biofuels, particularly E10, to develop successfully, stronger and more coordinated policies are needed, especially pricing mechanisms capable of creating a sufficiently attractive gap between E10 and mineral-based petrol, an expert has said.

Vietnamese farm produce promoted at African investment, trade forum

Vietnamese farm produce promoted at African investment, trade forum

The 12th Africa Forum for Investment & Commerce (AFIC 12) opened in Algiers, the capital of Algeria, on May 9, drawing around 2,000 participants, including officials, economists, businesses, financial and development organizagtions from 43 African countries and international partners, including Vietnam.

Int'l medical, pharmaceutical expo opens in Hanoi

Int'l medical, pharmaceutical expo opens in Hanoi

The exhibition, which runs until May 9 at the Hanoi International Centre for Exhibition, showcases advanced products and technologies across a range of fields, including pharmaceuticals, drug manufacturing machinery and equipment, medical devices, hospital and clinic services and dental equipment.

Mega projects to transform Ho Chi Minh City urban landscape

Mega projects to transform Ho Chi Minh City urban landscape

Leading the charge in this massive building spree is the new central city square in the core of the Thu Thiem new urban area. Spanning more than 20 ha, it’s the crown jewel of the Central Square and new administrative center complex.

Vietnam establishes itself as one of region’s most dynamic manufacturing and supply bases

Vietnam establishes itself as one of region’s most dynamic manufacturing and supply bases

The country’s stable political and economic environment provides a critical foundation for long-term sourcing strategies. At the same time, Vietnam has demonstrated a strong ability to scale up manufacturing, supported by a continuously expanding industrial base capable of meeting both high-volume demand and increasingly complex technical and quality requirements.

Vietnamese pomelos gain broader access to Australian market

Vietnamese pomelos gain broader access to Australian market

The update by Australia’s Department of Agriculture, Fisheries and Forestry to its Biosecurity Import Conditions system (BICON) on April 10, officially setting out import conditions for Vietnamese pomelos, is regarded as a major milestone in market access efforts.

Vietnam's industry spearheads transition to circular economy

Vietnam's industry spearheads transition to circular economy

The circular economy is no longer just a policy choice. It has become an inevitable trend for delivering sustainable and green growth, sharpening competitiveness at home and abroad, and meeting Vietnam’s net-zero emissions target by 2050. It is now a prerequisite to sustain long-term economic expansion, particularly in industrial production and supporting industries.

Nearly 100 tonnes of Vietnamese fruits, vegetables airlifted to UAE

Nearly 100 tonnes of Vietnamese fruits, vegetables airlifted to UAE

Vietnamese fresh produce and processed foods are increasingly recognised for their quality, with items such as cashew nuts, coffee and spices gaining popularity among Middle East consumers. In 2025, Vietnam’s farm produce exports to the UAE exceeded 445 million USD, up nearly 24% year-on-year.