By Saikat Chatterjee
LONDON (Reuters) - The Japanese yen edged higher on Thursday, heading for its biggest monthly rise since May as risk appetite remained on the back foot with investors skeptical on the prospect of a trade-war breakthrough any time soon.
"Investors are still concerned about the trade war and there is little optimism we will see a substantial breakthrough in negotiations," said Esther Maria Reichelt, an FX strategist at Commerzbank (DE:CBKG).
U.S. President Donald Trump's administration on Wednesday made official its extra 5% tariff on $300 billion in Chinese imports and set collection dates of Sept. 1 and Dec. 15.
Against the greenback
"It's very difficult to take on any kind of major risk in this environment," said Chris Weston, head of research at forex brokerage Pepperstone Group, pointing to the inverted yield curve as an indicator of sentiment.
Spreads between 10-year U.S. Treasury debt and comparable two-year bond yields inverted to minus 3 bps, its lowest since May 2007.
Sterling remained in the spotlight after Prime Minister Boris Johnson's plan to suspend parliament raised the odds of a no-deal Brexit. The British currency
China's onshore spot yuan
Elsewhere, the kiwi