The dollar was trading near one-week lows against the yen on Thursday as declines in U.S. Treasury yields boosted expectations the U.S. Federal Reserve will cut interest rates later this month.
Government bonds are in the middle of a global rally, which has pushed U.S. Treasury yields to the lowest in over two-and-a-half 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 107.79 yen on Thursday, after touching a one-week low of 107.54 yen on Wednesday.
The greenback has fallen 3.5% versus the yen in the past three months amid growing signs the Fed will cut rates at its July 30-31 meeting.
The U.S. dollar index against a basket of six major currencies was little changed at 96.35.
Global forex trading likely will be subdued on Thursday as U.S. financial markets are closed for a public holiday.