The yen weakens against the dollar as US Treasury yields rebound, supporting the greenback ahead of key global PMI data.
USD/JPY climbed above 159.00 on Thursday, recovering most of the prior session’s losses. The move was driven by a stronger US Dollar, which rebounded after hitting a three-month low, supported by rising US Treasury yields.
Yields recovered from Wednesday’s sharp drop following the US Treasury’s decision to expand liquidity-support buybacks for longer-dated debt. Weaker-than-expected weekly jobless claims also bolstered the dollar, reinforcing expectations that the Federal Reserve will maintain rates next month.
The Japanese yen remained the weakest major currency, pressured by elevated oil prices and a widening trade deficit. Japan’s July trade data showed surging imports due to higher energy costs, adding to fiscal concerns and keeping the yen under pressure.