The catalyst appears to be some weak US manufacturing data, which has raised fears of a sharp downturn in the world’s largest economy, with traders already on edge ahead of crucial monthly jobs data due on Friday.
The yen rose about 0.3 percent to 145.02 per dollar by 0047 GMT, after rising 1 percent overnight against the dollar.
The price tends to track long-term US Treasury yields, which fell about seven basis points overnight and continued to fall in Asian trading hours to 3.8329 percent, as investors flock to bonds as safe havens.
However, the dollar remained strong against most other major currencies, as it tends to attract safe-haven flows even when the U.S. economy is the concern.
The pound fell to $1.3110, after falling 0.23 percent overnight. The euro rose slightly to $1.10495, after falling 0.26 percent in the previous session.
The Australian dollar fell 0.15 percent to $0.67015, after falling 1.2 percent on Tuesday.
“Markets are nervous ahead of Friday’s all-important non-farm payrolls report… which most market participants acknowledge will be at least a significant factor in whether the Fed cuts interest rates by 25 or 50 basis points,” said Gavin Friend, chief market analyst at National Australia Bank.
“All of these moves in assets point to a risk-off, safe-haven outlook,” he continued.
Investors are also awaiting jobs data on Wednesday and the unemployment claims report on Thursday.
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