The dollar rose to a fresh high of 162.77 yen in the early Asian session, driven by a sharp rise in Treasury yields. This rise has pushed the yen to a 40-year low, prompting concerns about potential intervention from Japanese authorities.
Market Analysis
Analysts believe that the rise in Treasury yields, combined with the upcoming U.S. jobs report, has led to increased bets on a potential Federal Reserve rate hike. The euro and sterling also fell against the dollar, with the euro down 0.07% to $1.1413 and sterling down 0.09% to $1.3252.
The rise in the dollar has been driven by a 9-basis-point intraday rise in the 10-year U.S. Treasury yield, which ended the session 4.8 bps higher. The 2-year yield was up 3 bps, standing at 4.1702%.
Traders are now pricing in a 67% chance of a Federal Reserve rate hike in September, up from a 20.5% probability a month ago. The focus for the day ahead is on Fed Chair Kevin Warsh’s appearance at the European Central Bank Forum on Central Banking in Portugal.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
