The dollar was holding steady against a currency basket Thursday and the safe-haven yen turned lower as a cautious calm returned to markets which have been roiled by a brutal selloff triggered by fears over the outlook for the global economy.
The U.S. dollar index, which measures its value against a basket of six major currencies, stood at 97.81 by 03:40 AM ET (07:40 GMT) after a 0.2% gain on Wednesday.
The dollar gained ground against the yen, rising 0.1% to 106.19. On Wednesday, the yen rallied 0.8% versus the greenback, its biggest daily gain in two weeks.
Spooked investors fled from stocks and sought safe-haven assets after the U.S. Treasury yield curve inverted Wednesday for the first time in 12 years.
The inversion, where 2-year yields trade higher than 10-year yields, is considered by some analysts to be a sign that the U.S. economy is likely to enter a recession. Read More....