Asia markets on Wednesday are likely to focus on Federal Reserve Chair Janet Yellen’s overnight speech as North Korea tensions take a backseat.

Fed Chair Janet Yellen’s speech on Tuesday was regarded as slightly hawkish by market watchers after she said the central bank had to continue raising interest rates gradually in the face of “significant uncertainties.”

However, Yellen also acknowledged that the Fed may have “misjudged” the strength in the labor market and inflation, suggesting the central bank could be more dovish in removing policy accommodation than previously expected.

The greenback touched a one-month high following Yellen’s comments, although it later gave up some gains. The dollar index, which tracks the greenback against a basket of rival currencies, stood at 93.004 at 6:35 a.m. HK/SIN after reaching as high as 93.286 earlier. That compared with levels under 92 last week.

The dollar also clawed back gains against the Japanese currency to fetch 112.24 yen. The U.S. currency had traded around the 111 handle in the last session after North Korea accused President Donald Trump of declaring war.

In news related to the hermit state, the U.S. Treasury Department on Tuesday put sanctions on North Korean-linked banks and persons. The sanctions aimed to curb financial support for the North’s weapons program.

The world’s second-largest economy is “quite serious about living up to the commitments they have made regarding North Korea,” U.S. Commerce Secretary Wilbur Ross said on Wednesday.

The order for Chinese lenders to stop doing business with Pyongyang “is a logical next step in the sanctions, and a very important one,” he continued in an interview with CNBC.

“Chinese commercial banks had been a big route for facilitation of trade to North Korea so the fact that the PBOC has put out a taboo, that’s a very big deal,” Ross said, referring to China’s central bank, or the People’s Bank of China.

Ahead, markets awaited headlines on U.S. tax reform, which is expected to be unveiled on Wednesday U.S. time.

In Asia, futures suggested a lower open for Japanese equities on Wednesday. Nikkei futures traded in Chicago were off 0.35 percent at 20,260 and Osaka futures were 0.39 percent lower at 20,250 at 6:12 a.m. HK/SIN. Those compared to the Nikkei 225’s previous close of 20,330.19.

Australian SPI futures were mostly unchanged, tracking higher by 0.07 percent at 5,675 compared with the S&P/ASX 200’s Tuesday close of 5,670.983.

U.S. stocks closed mixed on Tuesday. The Dow Jones industrial average slipped 0.05 percent, or 11.77 points, to close at 22,284.32, the S&P 500 finished the session 0.01 percent above the flat line at 2,496.84, and the tech-heavy Nasdaq advanced 0.15 percent, or 9.57 points, to close at 6,380.16.

In currencies, the euro fell to its lowest levels in a month overnight, trading at $1.1789 at 6:43 a.m. HK/SIN. The common currency had slid following a weekend election in Germany, which delivered Chancellor Angela Merkel a fourth term, but also a need to form a coalition.

On the energy front, oil prices fell overnight after touching 26-month highs. Brent crude sank 1 percent to settle at $58.44 a barrel and U.S. crude declined 0.7 percent to settle at $52.43. Prices had climbed earlier in the week after Turkey on Monday warned it could curb oil exports from Iraq to the rest of the world.

Here’s the economic calendar for Wednesday (all times HK/SIN):

• 9:30 a.m.: China industrial profits
• 3:30 p.m.: Bank of Thailand interest rates decision