The dollar climbed to a one-month peak against the yen on Tuesday on the back of higher U.S. Treasury yields, while the euro was weighed down in morning trade by uncertainty about a new debt deal for Greece, but recovered some losses after a report said European officials would make a compromise proposal to give Athens another six months to negotiate a deal. U.S. Treasury yields, whose rise has been a key argument for the dollar's strength since the middle of last year, have jumped 20 basis points since early on Friday, after the release of a strong U.S. non-farm payrolls report. That move has supported the greenback overall, especially versus the Japanese currency, though some analysts say the dollar may be hard-pressed to surge again in the absence of a major market driver.
Crude oil prices fell for the first time in four sessions on Tuesday after the International Energy Agency (IEA) warned that ample supplies will raise global inventories before investment cuts begin to significantly dent production. Oil stockpiles in member countries of the Paris-based Organization for Economic Cooperation and Development (OECD) may approach a record 2.83 billion barrels by mid-2015, said the IEA, advisor on energy policy to a group of Western nations.
Gold prices eased on Tuesday as a rise in the dollar offset the supportive impact of concerns over Greece's future in the euro zone and fears over escalating violence in Ukraine, which hurt risk appetite. A 0.2 percent rise in the dollar against its currency basket led gold to stall after the previous day's rise, preventing a steeper recovery from Friday's three-week low.