Hot now: Dollar climbs

TOKYO: The dollar edged up against the yen and other urrencies, trimming earlier losses, as global investors gingerly dipped their toes back into riskier assets amid rapidly shifting views on U.S. monetary policy.

The dollar edged up 0.1 percent to 106.850 yen. It had dropped nearly 1 percent overnight as U.S. Treasury yields retreated from four-year peaks.

The greenback was given some reprieve, however, as yields leveled off. Japan´s Nikkei rose 0.4 percent and MSCI´s broadest index of Asia-Pacific shares outside Japan adding 0.9 percent.

The market focus was on whether equities could extend their gains should U.S. yields resume rising.

"For the dollar to attempt a run towards 108 yen again, global equities will have to show resilience even when long-term Treasury yields reach 3 percent," said Masafumi Yamamoto, chief forex strategist at Mizuho Securities in Tokyo.

As recently as Feb. 16, the dollar touched a 15-month low of 105.545 yen when the steady rise in U.S. yields triggered volatility in the broader equity market.