Investing.com - Investing.com - The dollar was trading close to the lowest levels in over a year against the safe haven yen on Wednesday as investors continued to seek refuge from global market volatility.
USD/JPY was down 0.5% at 114.51, not far from Tuesday's lows of 114.20, the weakest level since November 2014.
Demand for the yen continued to be underpinned as Japan's Nikkei fell overnight, amid persistent fears over the health of the global economy and the euro zone financial sector.
Global stocks have sold off sharply this week, hit by a combination of fears over slowing global growth, more widespread use of negative interest rates and a prolonged depression in the commodity sector.
The yen's gains came despite the Bank of Japan's shock decision to adopt negative interest rates last month. Lower interest rates make a currency less attractive to yield-seeking investors.
The dollar was trading at four month lows against the Swiss franc, which tends to be bought by investors in times of risk aversion, with USD/CHF at 0.9738, holding just above Tuesday's lows of 0.9693, the weakest level since October 22.
The euro edged lower, with EUR/USD easing to 1.1278 after hitting three-and-a-half month highs of 1.1338 on Tuesday.
The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was steady at 96.06, not far from Tuesday's three-and-a-half month lows of 95.68.
Investors were looking ahead to testimony by Federal Reserve Chair Janet Yellen later in the day for further clarity on the path of interest rate hikes this year in the wake of recent mixed U.S. economic reports.
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