Yen falls to 40-year low near 162.75 per USD
The yen hit a 40-year low near 162.75 per dollar as US Treasury yields jumped and traders lifted Fed September hike bets to 67% from 20.5% a month ago.
The bigger driver remains the US side of the pair, with Treasury yields jumping overnight. A resilient labour market read is reinforcing the hawkish case and narrowing the runway for anyone still expecting the Fed to hold.
Traders are watching Friday’s US public holiday as a potential window for Tokyo to intervene, given thinner liquidity could amplify the impact of any action.