Asia shares slip, dollar firm after Yellen's hike remarks

Asian shares slipped on Monday while the dollar marked fresh highs after Federal Reserve Chair Janet Yellen suggested that an interest rate hike could be around the corner.

The Fed should raise interest rates "in the coming months" if economic growth picks up and the labor market continues to improve, Yellen said on Friday.

The dollar index logged a fresh two-month high of 95.940, and was last up 0.4 percent at 95.897 (DXY).

The dollar rose 0.5 percent to 110.96 yen after earlier notching a fresh one-month higher of 111.03 yen.

The dollar also got a lift from revised U.S. gross domestic product data for the first quarter released on Friday, that showed that growth did not slow as much as first estimated.

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Dollar slips lower but remains broadly supported

The dollar slipped lower against the other major currencies on Thursday, as investors locked in profits from the greenback’s recent rally to two-month highs and awaited the release of U.S. jobless claims and durable goods orders data later in the day.

USD/JPY edged down 0.17% to 109.99.

The greenback continued to be underpinned by expectations that the Federal Reserve could raise interest rates in the near term after last week’s April Fed meeting minutes flagged a possible rate hike if the economy continues to improve.

However, investors remained cautious as G7 leaders held a summit meeting in Japan, amid persistent concerns over the strength of the global economy.

The G7 leaders were expected to reiterate their previous commitment to stability in the foreign exchange market.

EUR/USD rose 0.22% to 1.1178, pulling away from Tuesday’s two-month lows of 1.1132.

The euro gained ground after Greece and its creditors reached a deal on Wednesday to unlock €10 billion in bailout funds and trigger work on debt relief, easing concerns over another euro zone debt crisis.

The dollar was steady against the pound and the Swiss franc, with GBP/USD at 1.4701 and with USD/CHF at 0.9911.

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