U.S. dollar strengthens to 162.71 yen as higher Treasury yields fuel rally ahead of key U.S. jobs data.
The dollar climbed to a 40-year high against the yen, reaching 162.84 before settling at 162.71, up 0.1%. The rally was driven by a sharp rise in U.S. Treasury yields, with traders eyeing upcoming U.S. jobs data that could influence Federal Reserve rate decisions this month.
Recent levels surpass those that triggered Japanese intervention weeks ago. Analysts suggest authorities may act again, particularly during Friday’s U.S. holiday when liquidity is thinner. Japan’s top currency diplomat previously called past interventions effective, with some U.S. officials reportedly supportive.
Market observers note Japan’s Ministry of Finance appears more tolerant of yen weakness, citing broad dollar strength and lower oil prices easing inflation concerns.