The euro is falling for the third day as investors worry about reports that Italy’s new populist government will ask for a debt write-off. The dollar strengthened across the board as U.S. Treasury yields remain above 3%. However, the certainty of President Trump’s meeting with Kim Jong Un is being called into question, weighing on the dollar.

Push and pull on the dollar

The U.S. dollar is being propped up by rising U.S. Treasury yields. The 10-year benchmark remains above 3%, but below the highs of Tuesday.

On the other hand, worries about the whether President Trump’s June 12 meeting with North Korea’s Kim Jong Un will happen have the dollar weakening, especially against the safe-haven Japanese yen.

North Korea is threatening to cancel the summit due to “one-sided demand” for the country to end its nuclear weapons program. It seems as though Kim is interested in giving up the weapons, but not so quickly and without reward, rejecting the “Libya model” pursued by White House Security Advisor John Bolton.

USD/JPY has dipped slightly from the high of 110.4 overnight to around 110.1 this morning. The dollar is still holding strong against the euro and pound, largely ignoring worse-than-expected U.S. housing starts for April.

EUR/USD under pressure

The euro is being weighed down Wednesday morning by political jitters in the region and U.S. dollar strength from higher Treasury yields.

The populist parties forming Italy’s government are said to be considering seeking a €250 billion debt write off from the European Central Bank. Italian bonds fell on the news, which has been denied by both the Five Star Movement and the League parties. There is an E.U. law prohibiting central banks from such an action.

German Chancellor Angela Merkel also made some comments hurting the common currency, stating that the ECB’s expansive monetary policy won’t last forever and that the member countries need to integrate better.

EUR/USD is trading around 1.176 after falling below 1.18 earlier this morning after the release of the consumer price index for the Euro-region.

CPI measurements across the board met expectations for April, reporting steady growth. Earlier, German CPI for April also met expectations.

Emerging markets taking a hit

Geopolitical concerns and USD strength from rising U.S. Treasury yields are pressuring emerging market currencies.

Turkey’s lira hit a new low of 4.501 against the dollar Wednesday morning. It was able to recoup some losses after Turkey’s central bank said it was monitoring the markets and would take the necessary steps.

The lira isn’t the only emerging market currency reaching new lows. According to Bloomberg, 23 of the 24 currencies they consider from emerging markets fell Tuesday. Argentina’s peso was the only gainer.