Yen slips through the 150 barrier on US yields

Economies.com
2024-02-20 06:00AM UTC

Yen declined in Asian trade on Tuesday against a basket of major rivals, resuming losses against the dollar and trading below 150 yen per dollar once more as US treasury yields rally.

 

The gains came despite statements by Japan’s financial minister on monitoring the currency’s forex movements and preparing for intervention to support it if needed. 

 

USD/JPY

 

USD/JPY rose 0.15% to 150.37, with a session-low at 150.07, after the yen rose 0.1% yesterday against the dollar away from a three-month trough at 150.88.

 

US Treasury Yields 

 

US 10-year treasury yields rose by over 0.8 basis points today, maintaining gains for another session and underpinning the greenback. 

 

The developments come following a spate of strong US data and bullish remarks by Fed officials this month. 

 

The data and remarks hurt the odds of early US interest rate cuts in March and May, and bolstered the conviction that June will likely be the date of the first Fed rate cut. 

 

Higher US yields pressure the yen against the dollar, as the yield gap between Japanese and US bonds widens.  

 

Japan’s Financial Minister 

 

Japan’s financial minister Shinuchi Suzuki said on Tuesday that authorities are closely monitoring yen’s movements in the forex market and will intervene to support the local currency if needed.

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