In the foreign exchange market on the 6th, the yen expanded its decline. Against the US dollar, it was at the 143 yen level at one point, marking the first time in 24 years that the yen has depreciated. It is the biggest drop among major currencies. The dollar gained broadly on the back of a sharp rise in U.S. Treasury yields and a rise in the Institute for Supply Management (ISM) nonmanufacturing index.
U.S. ISM Non-Manufacturing Composite Index hits 4-month high
The yen fell 1.8% once morest the dollar to 143.07 yen, the lowest since 1998. The Bloomberg Dollar Spot Index rose 0.6% at one point.
John Hardy, head of FX strategy at Saxo Bank, wrote in a note that the sharp rise in U.S. Treasury yields combined with the Bank of Japan’s policy of containing yields “created a pressure cooker-like environment for the yen, with significant volatility. may occur,” he said.
Original title: Yen Plunges as Higher Treasury Yields Lift Dollar: Inside G-10 (excerpt), *USD/JPY TRADES ABOVE 143 FOR FIRST TIME SINCE 1998
(USD/JPY levels updated. Add market commentary.The article before the update has corrected some descriptions of the yen level)
