The dollar was on the back foot on Thursday, trading near a one-week low versus the yen as falling Treasury yields fuelled expectations the U.S. Federal Reserve will cut interest rates this month for the first time in a decade.
Government bonds are in the middle of a global rally, which has pushed U.S. Treasury yields to the lowest in more than 2-1/2 years and sent European yields to record lows on increasing bets major central banks will cut interest rates to bolster the global economy.
The dollar was little changed at 107.75 yen on Thursday, after touching a one-week low of 107.54 yen on Wednesday.
The dollar index against a basket of six major currencies was slightly lower at 96.712.
U.S. President Donald Trump's administration said on Wednesday it is scheduling a call with Chinese negotiators next week that would mark the resumption of talks between the two countries.
Source : Reuters