-

Yen wilts as US yield rally squeezes currency

The Japanese Yen is feeling the heat as rising US Treasury yields continue to widen the interest rate gap between the two economies. The USD/JPY pair trades near a 34-year high at 151.88, with Japanese …

The Japanese Yen is feeling the heat as rising US Treasury yields continue to widen the interest rate gap between the two economies. The USD/JPY pair trades near a 34-year high at 151.88, with Japanese authorities closely monitoring the situation for potential intervention to curb the Yen’s decline.

Despite the uptick in US yields, the Dollar has failed to break decisively above the key 152 Yen level. This suggests market caution due to potential intervention by the Bank of Japan (BOJ). Finance Minister Shunichi Suzuki reiterated their stance against “excessive” Yen weakness, hinting at possible market action.

Gold steady near record highs, investors eye Fed minutes, inflation data
Gold prices remain near record highs despite overbought signals, with investors awaiting cues from the Federal Reserve this week.

Adding to the pressure, BOJ Governor Kazuo Ueda hinted at a potential policy shift. He suggested the bank might reduce monetary stimulus if inflation continues its upward trend. This aligns with the rising US Treasury yields, as the market increasingly doubts the Federal Reserve will begin cutting rates in June.

All eyes now turn towards key US inflation data due on Wednesday, which could further influence interest rate expectations and currency valuations.


Subscribe to Investomania for more forex news and updates.

Sign up for Investomania

Subscribe to the Investomania newsletter to have our daily recap delivered directly to your inbox.

No spam. Unsubscribe anytime.