Tokyo: The dollar found support at the start of Asian trading on Tuesday after US President Donald Trump announced a pause in a planned attack on Iran to allow for negotiations, while bond markets showed signs of stabilization following a two-day selloff.
According to Qatar News Agency, the US dollar index, which measures the greenback's strength against a basket of six currencies, held steady at 99.026. This stability attracted bids after fears of an escalation in the Middle East conflict pushed the gauge 0.3% lower on Monday, breaking a five-day winning streak.
During the past week, the dollar had strengthened as investors sought a safe haven amidst the Middle East tensions and a global bond market selloff. Against the yen, the US dollar remained flat at 158.895 yen. This came after Japan's government data released on Tuesday showed the economy grew by an annualized 2.1% in the first quarter, exceeding the median market forecast of a 1.7% gain.
The euro remained flat at $1.1650, while the British pound saw a slight decrease of 0.1% to $1.3427. The Australian dollar experienced a 0.1% drop to $0.7164, with the New Zealand dollar also slipping 0.1% to $0.5868. In offshore trade, the US dollar maintained its position against the Chinese yuan, holding steady at 6.798 yuan.