The yen fell to the lowest this year and Treasuries declined as U.S. lawmakers reached a tentative deal on border security funding, damping demand for haven assets.
Japan's currency also slid versus all its 16 major peers as President Trump administration said he still wants to meet China's Xi Jinping to help end the trade war. Australia’s dollar advanced as risk sentiment improved and local data showed business conditions and confidence rose last month.
USD/JPY rose 0.2% to 110.61 after reaching 110.65, the highest since Dec. 28; Treasury 10-year yields climbed 3bps to 2.68%.
AUD/USD climbed 0.2% to 0.7078 after dropping to 0.7054 in early trade, the lowest since Jan. 4.
GBP/USD rose 0.1% to 1.2865 after sliding 0.7% on Monday.