This week, inflation figures from Britain, Canada and New Zealand also showed that central banks around the world are far from having brought inflation that has soared to has had the effect of stifling growth, fueling recession fears and fueling demand for the safe haven dollar.
Faced with the rise of the greenback, the yen once once more broke through a new low of 32 years. The pound, the euro and the currencies of the antipodes also suffered losses in the first Asian exchanges.
The US dollar index was up 0.05% to 113.04, following rising almost 1% overnight.
The benchmark 10-year US Treasury yield rose to 4.148%, its highest level since mid-2008, while the two-year Treasury yield hit a 15-year high of 4.58%.
“You still can’t write off the US dollar, I’m still not convinced that we’ve necessarily seen the highs of this cycle,” said Ray Attrill, head of FX strategy at National Australia Bank (NAB).
The Japanese Yen hit a new low at 149.96 per dollar, and last bought at 149.95.
The fragile yen has been losing momentum for 11 consecutive sessions as of Wednesday’s close, and has returned to 32-year lows in the past six sessions.
“Looks like it’s the rabbit caught in the headlights right now,” NAB’s Attrill said.
“Given that Treasury yields have moved firmly above 4%, were it not for the threat of intervention, I believe the dollar/yen would already be trading north of 150.”
Last month, Japan intervened in the foreign exchange market to buy yen, for the first time since 1998, in an attempt to prop up the battered currency.
Elsewhere, the pound was down 0.2% at $1.12005, although data released on Wednesday showed the biggest jump in food prices since 1980 pushed UK inflation back into double digits last month.
The inflation figures come on the heels of a turbulent week for the pound, following Jeremy Hunt scrapped Prime Minister Liz Truss’ economic plan earlier this week and cut his vast energy subsidy.
L’euro a baiss de 0.1 % 0.9762 $.
The Aussie was down 0.2% at $0.6258, while the Kiwi was down 0.36% at $0.5656.
Thursday’s data showed Australia’s unemployment rate remained near five-decade lows at 3.5% in September, although there was a potential sign of an easing in the very tight labor market as employment increased much less than expected.
