Dollar on the defensive amid lower yields, yen hovers near 38-year trough
dollar remained on the back foot on Wednesday after dovish comments from Federal Reserve Chair Jerome Powell sent U.S. bond yields lower, overshadowing a strong domestic jobs report.
The euro held firm, helped by a stubbornly high local inflation reading on Tuesday. Sterling was steady ahead of Thursday's U.K. election.
However, the yen continued to languish close to a 38-year low versus the dollar, amid the increased possibility of a second Donald Trump presidency, which could likely lead to higher long-term Treasury yields.
The dollar index, which measures the currency against the euro, sterling, yen and three other major peers, was little changed at 105.66 early in the Asian session, after a 0.14% retreat in the previous session.
The euro was flat at $1.0749, trading near the top of its range since mid-June.
Sterling held its ground at $1.2689 after rising 0.28% on Tuesday.
The yen was at 161.54 per dollar, after slipping to the lowest since December 1986 on Tuesday at 161.745.
Traders remain on high alert for another round of official Japanese intervention, after the Bank of Japan and the Ministry of Finance spent some 9.8 trillion yen ($60.67 billion) in the days spanning late April and early May, when the currency plunged to 160.82 per dollar. Some speculated authorities could act on Thursday, when thin liquidity due to a U.S. holiday would exacerbate market moves.
President Joe Biden's faltering debate performance last month has triggered a move higher in long-term Treasury yields, amid greater risk
