NEW YORK: The dollar was on track for its fifth straight day of declines against the yen, which was at a seven-week high against the greenback on Friday as investors sought Japan's safe-haven currency due to monetary policy, US election uncertainty and the latest US-China political tensions.

The dollar, after falling to 104.270 yen earlier in the session - its lowest level against Japan's currency since July 31 - last traded at 104.38, down 0.33% on the day. While the dollar was up against a basket of currencies it was on track for a weekly decline after two weeks of gains.

Aside from political uncertainty Boris Schlossberg, managing director of FX strategy at BK Asset Management said Japan's policy of yield curve control was also a factor as it was pushing up real interest rates.

"Japanese market conditions are much tighter than they seemingly appear despite QE from the Bank of Japan," said Schlossberg. "That's creating a distinct and significant tilt toward the yen."

At its meeting, the Bank of Japan maintained its minus 0.1% short-term interest rate target and a pledge to cap 10-year bond yields around zero, as widely expected. Tokyo markets will be closed on Monday and Tuesday next week, so investors positioning for thin liquidity could also have played a role in Friday's yen move. The Australian dollar was down slightly versus the US dollar, at $0.7298. The euro fell slightly, to $1.1833, and was set for a small weekly loss.