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 European markets are closed for the Easter Monday holiday.
U.S. stock futures ticked up 0.3 percent, although they remain flat
for the quarter.
In the past week, the dollar has been helped by
stronger-than-expected gross domestic product data and comments from
some Fed officials indicating that policymakers think they could
raise interest rates as early as next month.
The dollar index against a basket of six major currencies rose as
high as 96.339, its highest in almost two weeks. It was last trading
up 0.1 percent at 96.273.
"Fed officials generally looked to share views that they need to
maintain a rate hike path given a U.S. recovery," said Jeong
My-young, Samsung Futures' research head in Seoul. The dollar rose
0.4 percent to 113.51 yen, keeping intact its steady recovery from a
6-1/2-month low of 110.67 hit on March 17 after a Federal Reserve
meeting that left markets convinced U.S. interest rates would not
rise soon.
The yen weakness gave Japan's Nikkei a 0.8 percent boost to its
highest close in two weeks.
Japan was the region's sole winner. With share markets in Australia,
New Zealand and Hong Kong closed for holidays, the MSCI's broadest
index of Asia-Pacific shares outside Japan was down 0.1 percent.
Shares in Korea ended the day little changed, and Taiwan gave up
earlier gains to close down 0.2 percent.
Chinese stocks also reversed course, with the Shanghai Composite
index falling 0.3 percent and the CSI 300 losing 0.4 percent.
Indonesia, Singapore, Malaysia and the Philippines all extended
losses, trading between 0.3 percent and 1.2 percent lower.
U.S. GDP increased at a 1.4 percent annual rate in Oct-Dec, above
the previously reported 1.0 percent pace, driven by fairly strong
consumer spending, the third GDP estimate showed on Friday.
U.S. PCE inflation data due at 1230 GMT could further fan
expectations of an early rate move if it shows increasing
inflationary pressure.
"The PCE inflation has been rising of late. The Fed has said the
prices will be the key in determining policy so the data should
attract a lot of attention," said Masahiro Ichikawa, senior
strategist at Sumitomo Mitsui Asset Management.
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The annual core PCE inflation rose 1.7 percent in January, the
fastest pace since July 2014.
The data will be followed by a speech from Federal Reserve Chair
Janet Yellen and a few other Fed policymakers on Tuesday, making the
Fed's policy the biggest focus for now.
Given that money markets are pricing in only about a 50 percent
chance of a rate hike by the Fed in June, with hardly any
significant likelihood in April factored in, signs of a tightening
in the next quarter could rattle financial markets.
Gold, which earlier fell to a one-month low, recovered some of those
losses to trade down 0.2 percent at $1,216.10 an ounce.
The euro was little changed at $1.1163, not far from Thursday's
one-week low of $1.1144.
The Australian dollar advanced 0.3 percent to $0.7525 having lost
1.4 percent last week and knocked away from an eight-month high of
$0.7681.
Oil prices, which have risen about 50 percent since multi-year lows
hit in January, extended their gains in thin trading, powered by
major producers' plans to freeze output at January's highs.
U.S. crude futures gained 1.3 percent to $39.96 per barrel, and
Brent advanced 1.2 percent to $40.91.
(Additional reporting by Jongwoo CHEON; Editing by Kim Coghill)
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