Yen Falls to Weakest Level Since 1986
The Japanese yen weakened to its lowest level this year, reaching its weakest level since 1986. The pressure came as the US dollar strengthened, supported by rising Treasury yields and oil prices.
The USD/JPY pair rose 0.2% to 162.89. This surpassed its previous peak on July 1, underscoring the significant pressure on the Japanese currency.
The US dollar's strength was also evident in the Bloomberg Dollar Spot Index, which rose 0.1%. The dollar received support as investors remained wary of inflation risks from rising oil prices and the potential for higher interest rates in the United States.
In the bond market, US Treasuries weakened across all tenors. The 10-year Treasury yield rose 4 basis points to 4.63%, further strengthening the dollar's appeal against the yen, which remains weighed down by Japan's monetary policy.
Meanwhile, EUR/USD held steady at 1.1412, while GBP/USD fell 0.4% to 1.3382. This movement indicates that the US dollar remains the dominant currency amidst global pressures.
Impacting the market, the weakening yen could raise concerns about potential intervention by Japanese authorities. If USD/JPY continues to break through new levels, the market could become increasingly sensitive to comments from the Japanese government, while the US dollar has the potential to remain strong as long as Treasury yields and oil prices remain high. (arl)
Source: Newsmaker.id
