The dollar ascended to a new 12-1/2-year peak against the yen on Tuesday, while Asian shares fell for a second day as the stronger greenback pressured commodity prices. "The rise in the dollar against the yen has been steep but sentiment favors testing new highs rather than consolidating," said Kyosuke Suzuki, director of forex at Societe Generale in Tokyo. The Reserve Bank of Australia kept rates on hold at a record low of 2.0 percent at its latest policy meeting on Tuesday as expected.
Crude oil prices stabilized on Tuesday due to firm demand after dipping in early trade on expectations that OPEC would not cut output at its meeting this week. The Organization of the Petroleum Exporting Countries (OPEC) meets this Friday in Vienna to discuss its production strategy, with U.S. bank Citi saying the group was likely to maintain current production. Prices were supported as Saudi oil minister Ali al-Naimi said overnight that demand would pick up and tighten the market in the second half of the year.
Greece's government can make no more concessions in negotiations for a cash-for-reforms deal and its international lenders must take responsibility for their role in the talks, Labour Minister Panos Skourletis said on Tuesday. Athens and its creditors from Europe and the International Monetary Fund are racing to prevent the country from defaulting on its debt and potentially leaving the euro zone. An EU official said any offer from Greece's creditors to Athens would not be framed as an ultimatum.