The dollar strengthened against most major currencies, with USDJPY hitting a 40-year high amid higher U.S. Treasury yields.
The USD closed mostly higher against major currencies, except for a slight decline of 0.11% against the AUD. Rising U.S. Treasury yields and monetary policy divergence drove the dollar’s strength, pushing USDJPY to a 40-year high.
The Japanese yen was the weakest performer, dropping 0.42% against the dollar. The Swiss franc and Canadian dollar also weakened, down 0.37% and 0.26%, respectively. Markets reacted to geopolitical tensions and trade policy developments, including U.S. tariffs on Canada.
Economic data showed mixed signals, with the ADP weekly NER Pulse at 16,500, below last week’s 19,750. U.S. Treasury Secretary Bessent suggested 3% growth is achievable, while Middle East tensions and trade disputes added to market uncertainty.