Asian shares tentatively rose in early trade on Tuesday, while the dollar steadied after investors locked in some gains overnight on its recent rally.
Japanese stocks bounced on Monday and the U.S. dollar held near four-year highs against a basket of currencies, as upbeat U.S. jobs data boosted sentiment after a week of worries about global growth and geopolitical tensions frayed investor nerves.
World policymakers gather in Washington later this week to ponder how to sustain economic recovery at a time when the United States is about to turn off its money taps.
Asian stocks fell on Thursday, dragged lower after the first case of Ebola diagnosed in the United States spooked Wall Street overnight, while a bout of risk aversion pushed down yields and put the dollar's recent rally on pause.
The dollar rose above 110 yen for the first time in six years and held near a two-year peak against the euro on Wednesday, as investors added to bets that U.S. data will drive the Federal Reserve to tighten policy.
The dollar rose to new multi-year highs against the yen, euro and a basket of currencies on Monday, a three-month-old rally showing no signs of dissipating before a week of important economic set pieces.
The dollar hit a four-year peak against a basket of currencies in early Asian trade on Monday, bolstering Japanese shares, but other Asian shares shrugged off Friday's Wall Street rebound in the face of political unrest in Hong Kong.
The U.S. economy grew at its fastest pace in 2-1/2 years in the second quarter with all sectors contributing to the jump in output in a bullish signal for the remainder of the year.
The dollar held near a four-year high against a basket of currencies on Friday, fueled by the biggest yield advantage over the euro in nearly 15 years as the Federal Reserve contemplates hiking interest rates.
The euro hit a 22-month low against the dollar on Thursday on the prospect of diverging monetary policy between the Federal Reserve and the European Central Bank as rate differentials swing decisively in the greenback's favor.
Asian stocks slipped on Thursday, giving back earlier gains as initial cheer from a rebound on Wall Street fizzled out, while the New Zealand dollar hit a one-year low when the central bank governor decried the currency's recent strength.
Asian shares got off on the back foot on Monday after an uninspiring session on Wall Street, while the dollar gave back a little of its recent solid gains in early trading.
The U.S. dollar held near a six-year peak against the yen early on Thursday and powered to a seven-month high on its New Zealand peer, which fell after the country's central bank said its current level is "unjustified and unsustainable".
Asian shares tumbled on Wednesday as markets wagered the Federal Reserve would raise interest rates earlier than expected, sending U.S. bond yields higher and keeping the dollar well bid near 14-month highs against a basket of major currencies.
Asian shares balked at the starting gate on Monday, skittish in the face of a deepening Ukraine crisis, while the euro touched a fresh one-year low ahead of this week's European Central Bank meeting.