The dollar slipped against the yen on Wednesday, pushing back towards last week’s 4-1/2-month low on worries over North Korea’s nuclear ambitions.
The euro was 0.1 per cent weaker on the day at $1.1928, having hit its strongest since January 2015 last week, according to Reuters.
The greenback was flat against a basket of other major currencies, pressured on Tuesday by Fed policymaker Lael Brainard saying inflation was “well short” of target and that the Fed should be cautious about raising US interest rates.
Brainard’s comments helped 10-year US Treasuries reach their lowest since November.
The dollar slipped 0.3 per cent against the yen, which tends to be bought at times of low market appetite for risk.
At 108.54 yen, that left the greenback close to last week’s 4-1/2-month low of 108.265.
The yen almost always gains when investors try to reduce exposure to risk because the currency is often used as a funding source to buy riskier, higher-yielding assets.
The Canadian dollar last traded at C$1.2395 per US dollar, having set a two-year high of C$1.2336 on Tuesday ahead of the Bank of Canada’s interest rate decision on Wednesday.
