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The U.S. dollar found some support in Asia on Thursday as commodity currencies took a breather from a steep rally driven by rising prices for exports.
While a recovery in the U.S. bond market offered little solace to the struggling yen.
On the geopolitical front, U.S. President Joe Biden attends an emergency NATO summit later in the day.
Meets with G7 leaders and addresses leaders of the European Union with markets on the lookout for escalation of sanctions on Russia.
Moves in Asia were fairly modest with the Australian and New Zealand dollars off about 0.2% from Wednesday's multi-month peaks and the euro down 0.1% to $1.0985.
The yen dipped about 0.3% to touch a fresh six-year low of 121.49 per dollar, as investors expect the Bank of Japan to lag way behind policy tightening by other major central banks fighting inflation.
An ever-more hawkish U.S. Federal Reserve has further widened that policy gap, though even an overnight steadying in the Treasury market after a few sessions of brutal selling didn't seem to give the yen much help.
"The fundamental drivers of dollar/yen now are U.S. rates as well as Japan's current-account deterioration because of high oil prices," said Shinichiro Kadota, senior FX strategist at Barclays (LON:BARC) in Tokyo.
"From a technical perspective, about 121.7 was high from early 2016.
So that would be the next key target in the really near-term, but if we break above that, 125 could come into focus."
Benchmark 10-year Treasuries, which have been battered by another round of bets on aggressive U.S. rate hikes, regained composure to rally on Wednesday.
But the yield, which rises when prices fall, is up more than 50 basis points this month. [US/]
The Aussie was last at $0.7486 and seems to have hit some strong resistance around $0.75. The New Zealand dollar last bought was $0.6959.
Sterling slipped overnight and was marginally softer on Thursday at $1.3187 even though February inflation was a little hotter than expected. [GBP/]
The Russian rouble hung on to Wednesday gains as Russia is seeking gas payments in roubles rather than dollars. - investing
