The dollar softened on Tuesday along with U.S. interest rate expectations and a fall in Treasury yields as investors detected a slight dovish shift in Federal Reserve officials' tone.
The yen held small gains as violence in the Middle East supported buying of safe-haven assets, and last traded firmly at 148.34 per dollar.
However comments from two Fed officials turned around the mood and U.S. rate forecasts overnight after noting the recent selloff in bonds might negate the need for further hikes.
Fed Vice Chair Philip Jefferson said the central bank would need to "proceed carefully" given the recent rise in yields.
"A handful of other officials, including Fed Governor Christopher Waller, are scheduled to speak today.
Persons:
—, Lorie Logan —, Philip Jefferson, Christopher Waller, Carol Kong, Sterling
Organizations:
Treasury, Federal, East, Swiss, Dallas, Columbus, New Zealand
Locations:
Asia, Tokyo