The yen held gains against major currencies today as falling US Treasury yields stoked fears of a global economic downturn and pushed investors towards safe-haven assets.
The reversal of the yield curve for US Treasuries for the first time in 12 years sparked the latest turmoil in financial markets, which contributed to the rise in gold prices and caused a sell-off in US stocks and oil.
The reversal of the yield curve, in which the yields of two-year bonds are traded at a higher level than the of 10-year bonds, historically precedes previous economic recessions.
The dollar was little changed at 105.90 against yen in Asian trading today. On Wednesday, the yen rose by 0.8% against the greenback, its biggest daily gain in two weeks.
The dollar index, which tracks the performance of the greenback against a basket of six major currencies, hit 97.914 after gaining 0.2% on Wednesday.
Spot gold, which investors usually buy in times of economic uncertainty, rose by 0.3 percent to its highest level in six years.
Against the dollar, the Swiss franc was last trading at 0.9735, holding on to a 0.3 percent gain on Wednesday.
