The dollar falls against the yen due to the decline in risk aversion and the Brexit saga By Reuters

By Shinichi Saoshiro

TOKYO (Reuters) – The dollar rebounded slightly against the yen on Tuesday, as Treasury yields retreated from their lows in 15 months, as investors rebadessed the risks of a more pronounced slowdown. of the global economy.

The pound sterling has remained in a narrow range with UK lawmakers having to vote on a range of Brexit options later in the day.

Global markets fell on Monday following the inversion of the yield curve of the US Treasury, which had already marked a recession.

"The dollar has followed the US yields, but the trend may have followed, there does not seem to be any further decline in yields," said Masafumi Yamamoto, chief foreign exchange strategist at Mizuho Securities in Tokyo.

"The decline in US stocks has also slowed, which has strengthened the dollar because it shows that the economic outlook for the market remains relatively good as the Fed prepares to adopt a more accommodative approach," he said.

The dollar edged up 0.1% to 110.065 yen and widened from the previous week's low (109.70), as fears of a global economic slowdown weighed on yields and boosted demand. investors for the yen, a safe haven.

Data on US consumer confidence and housing were released later in the day and could provide short-term indices for the currency market.

"The dollar should be more supportive if current economic indicators are robust, as strong data may be the only factor to prevent Treasury yields from falling again," said Junichi Ishikawa, chief investment strategist. head of foreign exchange trading at IG Securities in Tokyo.

The euro was stable at 1.137 USD.

The single currency fell to a 10-day low at $ 1.1273 on Monday, also touched by growing concerns over the slowdown in the Eurozone economy, but posted modest gains overnight after a German business confidence survey stronger than expected.

Sterling was in fact at $ 1.3197 after spending the previous day in a narrow range when British MPs took control of the government's parliamentary program for a day, with the extremely unusual goal of finding a way out. Brexit impbade.

They will now vote on various Brexit options on Wednesday, giving Parliament the opportunity to say whether or not it can accept an agreement providing for closer ties with the European Union.

The Australian dollar, sensitive to changes in risk sentiment, was up 0.15% to 0.7123 USD, thanks to the rebound in Asian equities.

The 10-year US Treasury yield was 2.430% after declining to 2.377% on Monday, its lowest level since December 2017.