The yen was the best performer among Group-of-10 currencies, supported by comments from the Bank of Japan about a "balanced" approach toward yield curve control. The dollar advanced as Treasury yields surged, after gauges of job creation and service-sector activity bolstered conviction the Federal Reserve will resume tightening this month, pushing stocks and bonds to reprice the likelihood of higher global rates.
US Treasuries tumbled, pushing two-year yields to the highest since 2007, while the UK 10-year yield jumped to the highest since 2008
The Bloomberg Dollar Spot Index climbed less than 0.1%, advancing for a second day.
The US labor market showed fresh signs of resilience on Thursday, as private hiring surged, layoffs slowed and filings for unemployment benefits stayed relatively low.
The US service sector expanded in June at the fastest pace in four months as business activity and orders quickened.
USD/JPY fell as much as 0.8% to 143.56.
Bank of Japan Deputy Governor Shinichi Uchida says a "balanced" approach should be taken on tweaking its yield curve control policy, Nikkei reports, citing an interview.
EUR/USD rose 0.3% to 1.0883 after dropping as much as 0.2% to 1.0834.
German factory orders rebounded in May, a sign the manufacturing slump may be easing as Europe's biggest economy shakes off a recession.
GBP/USD gained 0.3% to 1.2739; money markets are now fully pricing a terminal rate above 6.5% by March, which would be the highest since 1998 and compares with wagers on a 5% peak just a couple of months ago.
Source : Bloomberg
