LONDON/TOKYO—The U.S. dollar fell slightly on Tuesday as receding fears of a full-blown banking crisis slowed demand for so-called safe haven assets.
The yen rallied, despite traditionally also being a safe haven, with analysts pointing to a pick-up in flows ahead of the end of Japan’s fiscal year on Friday.
The dollar fell as low as 130.51 yen, and was last off 0.41 percent at 130.98 as the Japanese currency rose. That undid some of the dollar’s 0.64 percent jump against the yen in the previous session, which tracked a large rise U.S. government bond yields.
Analysts said Japanese companies were likely to be selling foreign bonds to bolster their balance sheets….