* Dollar/yen hits 1-week low as US yields hit 1-month lows
* Euro's advance vs dollar tempered by lower bund yields
* Aussie awaits RBA decision for immediate cues
By Shinichi Saoshiro
TOKYO, April 4 The dollar wobbled against the
yen on Tuesday, buckling against its safe-haven Japanese peer as
a risk-averse mood spread through the broader markets.
Investor appetite for risk has been dulled this week by a
number of factors, such as caution ahead of the upcoming meeting
between U.S. President Donald trump and Chinese President Xi
Jinping and a suspected suicide bombing in St. Petersburg,
"The dollar is feeling pressure against the yen from an
interest rate spread point of view, with Treasury yields having
fallen to one-month lows as Wall Street despite decent data,"
said Shin Kadota, senior strategist at Barclays in Tokyo.
The dollar extended overnight losses and was down 0.15
percent at 110.685 yen, its lowest in a week.
The euro was steady at $1.0666 after rising only
about 0.2 percent overnight against the dollar, its advance
tempered by a sharp decline in German bund yields driven by
flight-to-safety following the bombings in St. Petersburg.
Immediate focus in Asia was on the Reserve Bank of
Australia's policy decision due later in the day.
The central bank is widely expected to keep its cash rate at
a record low of 1.5 percent and focus is on its view of the
domestic economy and its implications for the future path of
The Australian dollar was flat at $0.7605, having
declined steadily over the past two weeks from a four-month high
The pound was little changed at $1.2489 after
dropping 0.7 percent overnight on data showing British
manufacturing lost momentum last month, the latest sign the
economy may be running out of steam.
The 10-year Treasury note yield hovered near a
one-month low of 2.321 percent plumbed overnight.
(Reporting by Shinichi Saoshiro; Editing by Eric Meijer)