The Japanese yen falls to its weakest level against the USD in four decades amid rising Treasury yields and monetary policy contrasts.
The USDJPY pair surged to a 40-year high, driven by a 0.42% decline in the yen as U.S. Treasury yields climbed and policy divergence with Japan persisted. The yen underperformed major currencies, reflecting investor expectations of sustained U.S. rate hikes versus Japan’s accommodative stance.
Earlier sessions saw mixed USD performance, with the dollar gaining against most majors except the Australian dollar, which rose 0.11%. The Swiss franc and Canadian dollar also weakened, down 0.37% and 0.26% respectively, as markets digested trade tensions and Middle East geopolitical risks.
The move follows a broader trend of dollar strength, supported by recent economic data and Federal Reserve signals. Analysts cite persistent inflation concerns and robust U.S. growth as key drivers for the currency’s resilience.