The dollar edged up on Wednesday but remained under pressure as an inversion in part of the Treasury yield curve caused concern about a possible US recession.
The greenback has enjoyed months of unrivalled performance against its peers but that could be undermined by growing concern about slowing US growth.
Those worries on Tuesday saw two-year yields rising above those of longer-dated 5-year notes for the first time in more than a decade.
The so-called “inversion” of the yield curve to many investors sounds an alarm about a looming US economic slowdown.
“In the initial phase of the inversion of the yield curve markets are worried and react more aggressively to weak data than to strong data,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.
“I think the dollar can be in correction-mode in a yield-curve inversion environment,” he added.
Against a basket of six rivals, the dollar edged up 0.1 percent to…