Investing.com – The dollar remained steady against other major currencies on Thursday in Asia as U.S. 10-year Treasury yields climbed above 3% again on Wednesday.
The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 92.95, up 0.01% at 12:00AM ET (04:00 GMT). The greenback reached this year’s new high on Wednesday at 93.22, then slipped back below the 93 level on Thursday.
On Tuesday, U.S President Donald Trump said the U.S. will back out from the Iran nulcear deal, putting oil supply in uncertainty as Iran will face sanctions again. The move higher in oil has helped boost Treasury yields, with the 10 year rate back above 3%, a key psychological level the benchmark for the first time since late April.
On Wednesday, the U.S. released Producer Price Index (PPI) that rose 0.2% in April following an increase of 0.3% in March, in line with market expectation. The CPI data will come later in the day.
The USD/JPY pair gained 0.01% to 109.73. Japan has a light week for data, although not much is about to change for its economic outlook, as the Bank of Japan looks set to keep their loose monetary policy.
In China, the People's Bank of China set the set the reference rate for the yuan against the dollar, the mid-point from which the currency is allowed to trade, at 6.3768 versus the previous day's 6.3733. The USD/CNY pair added 0.06% to trade at 6.3651.
Chinese CPI numbers came in below expectations, with the month-on-month CPI printing at a -0.2% contraction, below the expected -0.1% forecast. China's Producer Price Index also missed the forecast mark, coming in at 3.4% against the expected 3.5%.
The AUD/USD pair gained 0.09% at 0.7466. The Aussie remained bullish despite a miss for Chinese inflation data. Australia will see its home loan data on Friday.