Dollar extends gains

TOKYO: The dollar ticked up slightly on Tuesday, adding to gains made in overnight trade after U.S. Treasury yields rose on expectations the Federal Reserve would persist with its rate hikes this year.

The dollar index, a measure of the currency against a basket of six rivals, edged 0.05 percent higher at 94.707 on Tuesday compared to the previous day.

A jump in benchmark 10-year U.S. Treasury yields to a five-week high had provided support to the dollar in U.S. trade on Monday.

The surge in yields came despite criticism from President Donald Trump about the impact of the strength of the greenback and Federal Reserve interest rate rises on the economy.

"The U.S. economy is in a very healthy state overall. It is unimaginable the Federal Reserve would stop raising interest rates," said Mitsuo Imaizumi, chief currency strategist at Daiwa Securities.

CNBC had reported on Friday that Trump was concerned that the U.S. central bank would raise interest rates two more times this year. Trump had earlier questioned the Fed´s expected pace of hikes in posts on Twitter, saying it takes away from the United States´ "big competitive edge" and could hurt the U.S. economy.