Yen falls against firm dollar with US bond yields in focus

The Japanese yen fell against the US dollar on Monday, as the latter rallied and the US Treasury bond yields rose.

The Japanese current account surplus fell to 1.5 trillion yen from 2.08 trillion, while bank lending rose 6.2% last month.  

Japan's bank lending index rose to by 6.2% from 95.3, while the Economy Watchers Sentiment index improved to 41.3 from 34.1 points.

The US dollar drew support after the Senate approved the $1.9 trillion Covid-19 relief package, while the yield of the 10-year US Treasury bonds rose above 1.6%.

As of 20:54 GMT, USD/JPY rose 0.5% to 108.9, after hitting a high of 108.9, and a low of 108.3.