TOKYO: The dollar steadied against the yen on Wednesday, as U.S. yields pulled back from lows hit on concerns about a worsening trade feud between Washington and Beijing, although persistent worries about the trade rift are likely to cap any greenback recovery.
The dollar was little changed at 110.08 yen following its retreat to an eight-day trough of 109.55 on Tuesday after U.S. President Donald Trump threatened to slap more tariffs on China, prompting an angry response from Beijing.
Escalating tensions triggered risk aversion and caused a sell-off in global equities.
The yen is often sought in times of political tension and market turmoil.
The dollar managed to bounce back against the yen as a degree of calm returned to broader markets and Wall Street shares pared a bulk of their losses, while safe-haven U.S. Treasury yields climbed from three-week lows.
Better-than-expected U.S. housing data also nudged Treasury yields off their lows on Tuesday.
"The dollar has managed to stabilise versus the yen but its rise above 110 looks precarious as trade tensions linger in the background," said Shin Kadota, senior strategist at Barclays in Tokyo.
In this picture, the PCJCCI logo can be seen on September 1, 2022. — Facebook/Pakistan China Joint Chamber of...
A representational image of a US flag pictured alongside a street sign reading "Wall Street" in the New York city. —...
A security guard sits in front of a wall with signs and slogans at the operation building at the Pakistan Steel Mills ...
A worker cleans the entrance to the headquarters of Bank Indonesia, the nation's central bank, in Jakarta, Indonesia....
The MCB's logo is seen on a wall outside the bank's head office. — MCB websiteKARACHI: MCB Bank Limited on...
A foreign currency dealer counts US dollars at a shop in Karachi. — AFP/FileKARACHI: The rupee lost ground against...
