Markets were also anxiously awaiting surveys on global manufacturing for April to see if economic softness in the first quarter was just a passing phase linked to poor weather and the Lunar New Year holidays.
Asian stocks started in muted fashion on Monday as investors braced for a bevy of earnings from the world's largest corporations, while keeping a wary eye on USA bond yields as they approached peaks that had triggered ructions in the past.
Readings from Japan, France and Germany were all relatively reassuring.
U.S. Treasury Secretary Steven Mnuchin said he may travel to China, a move that could ease tensions between the world's two largest economies. The market had wobbled on Friday when Trump tweeted criticism of OPEC's role in pushing up global prices, but quickly steadied.
The dollar index edged up to 90.429 DXY, and further away from last week's low at 89.229.
Against the yen, the dollar hit a two-month high of 107.89 yen, and last changed hands at 107.85 yen, up 0.2 per cent from late USA trade on Friday.
Platinum was about 0.2% higher at $924/oz, while palladium rose almost 0.3% to $1032.70/oz.
E-Mini futures for the S&P 500 ESc1 were also pointing to lower start for Wall Street later. These include tech giants Amazon, Alphabet, Facebook, Microsoft, as well as Boeing and Chevron.
Of particular concern for USA analysts will be executives' views about their exposure to China, the world's No. 2 economy and an important market for many US companies amid the recent worries about a trade war.
Besides concerns over geopolitical risks, worries over US-China trade tensions also appear to be waning, Innes said.
On Sunday, China's commerce ministry said it would welcome U.S. officials to discuss trade and economic issues.
The spike in oil has driven up both market expectations of future inflation USIL5YF5Y=R and long-term bond yields.
"We're on another high for the year for dollar yields and it's not boding well for gold", a Hong Kong-based trader said.
The last time yields neared this number in 2013 it rocked risk appetite and sent stocks sliding. It also came shortly before oil prices went on a mighty 75 percent tumble.
Yields on benchmark 10-year treasuries climbed to the highest level since Jan, 2014 on Friday. "Oil is now at the cusp of levels where higher prices will spark greater currency and broader asset market volatility", said Deutsche Bank's macro strategist, Alan Ruskin.
"If oil helps push the 10-year yield into new terrain for this cycle, this will play at least mildly United States dollars positive in a change of correlation".
Indeed, dealers cited yield differentials for the dollar's latest rally, as the gap with German bonds touched the widest in nearly three decades.
The currency was last at 107.89 yen JPY= and testing major resistance in the 107.90/108.00 zone which has held solid since mid-February.
On Friday, the euro had touched a two-week low at $1.2250 as investors trimmed long positions in the euro ahead of this week's European Central Bank policy meeting at which policymakers are largely expected to signal no change in policy.
The euro was easier at $1.2272 EUR=, having repeatedly failed to break above $1.2400 in the last couple of weeks. "If inflation is rising, gold provides a hedge", he said.