Investing.com - The yen pared back gains against the dollar on Wednesday as oil prices edged higher amid bargain buying, after steep falls in the previous session boosted demand for the safe haven Japanese currency.
USD/JPY fell to overnight lows of 119.42 before pulling back to trade at 119.89.
Oil prices edged higher on Wednesday amid bargain buying after falling below $30 per barrel in the previous session on oversupply fears and concerns over slowing global growth.
Volatility in oil prices has hit global equity markets and underpinned demand for the yen in recent sessions.
The yen fell to six-week lows against the dollar on Friday after a shock decision by the Bank of Japan to adopt negative interest rates as part of an ongoing effort to combat deflation.
The low-yielding euro was little changed against the dollar, with EUR/USD at 1.0915 after easing up to early highs of 1.0936.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 98.9 as investors looked ahead to U.S. data on private sector hiring and service sector activity later in the day.
Investors were also beginning to turn their attention to Friday’s U.S. nonfarm payrolls report for possible indications on the path of U.S. interest rates hikes this year.