The US dollar dipped against the yen on Monday, edging lower after the US Treasury yields pulled away from the highs reached earlier, on mixed economic news.
The greenback was down 0.2 percent at 117.300 yen. The euro was steady at US$1.0457. Trading was slow as many key markets are shut on Monday for the Christmas holidays.
"The currency market is likely to lack incentives as major markets in Asia, Europe and North America will be closed. That said, dollar/yen risks drifting below 117 on caution toward the Trump administration's protectionist policies," said Masafumi Yamamoto, chief currency strategist at Mizuho Securities in Tokyo.
The US president-elect Donald Trump last week named economist Peter Navarro, known as a China hawk, to head the newly formed White House National Trade Council.
Currencies also took stock of the US debt market, which saw the benchmark 10-year note yield end lower on Friday. The yield pulled back from 27-month peaks in mid-month following Friday's release of US economic indicators that included strong housing and consumer confidence data but also numbers that pointed to slower household income.
The Australian dollar was flat at US$0.7178 after dipping to US$0.7160 on Friday, its lowest level since May, following a media report saying Chinese President Xi Jinping was open to the growth of China's economy falling below 6.5 percent.
The Australian currency is sensitive to the economic prospects of China, its major trading partner.
Reporting by Shinichi Saoshiro; Editing by Eric Meijer; Reuters
