The Japanese Yen weakens for a second day amid rising import costs despite 10-year JGB yields reaching 30-year highs.
The Japanese Yen (JPY) extended losses against the US Dollar (USD), trading near 161.60 in Asian hours on Monday. Surging import costs continue to pressure the currency despite a rally in 10-year Japanese Government Bond (JGB) yields to 30-year highs.
The yen’s decline marks a second consecutive day of weakness, reflecting persistent economic strains. Analysts note that while higher JGB yields typically support the yen, elevated import expenses—particularly for energy and commodities—are outweighing the bond market’s impact.
Market reaction remains muted, with traders monitoring further developments in monetary policy and trade dynamics.