USD/JPY rebounds on Thursday, recovering most of the previous day’s losses as the US Dollar (USD) stages a modest recovery after falling to a three-month low.
At the time of writing, USD/JPY trades around 159.05, up roughly 0.55% on the day
The Greenback finds support as US Treasury yields rebound from Wednesday’s sharp pullback, which was triggered by the US Treasury Department’s announcement that it would increase its liquidity-support buybacks for longer-dated government securities. Both the 10-year and 30-year yields are up around 6 basis points on Thursday. The US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, trades around 98.90, bouncing from an intraday low of 98.56, its weakest level since May 14.
Weekly US labour-market data also offer some support, with Initial Jobless Claims falling to 206K in the week ending August 15, below expectations of 210K and the upwardly revised previous reading of 212K. Meanwhile, the Japanese Yen (JPY) is underperforming all its major peers, with elevated Oil prices acting as a major near-term headwind, while broader fiscal concerns and relatively low interest rates remain longer-term drags on the currency. Data released on Thursday showed that Japan’s imports and exports both climbed to record highs in July.