- The dollar propped up by rising Treasury yields.
- The yen among the worst performing currencies on Tuesday.
- USD/JPY rises for the third day in a row, extends rebound from lows in months.
USD/JPY is rising for the third day in a row on Tuesday and hit a one-week high at 133.39. In the run-up to the American session, it remains close to the highs of the day, supported by the rise in sovereign bond yields and risk appetite.
In both the US and Europe, bonds are falling. The US 10-year yield yields 3.77%, the highest since late November while the German benchmark is at 2.50% testing the 2022 high. This is playing against the yen.
Another negative factor for the Japanese currency is the rise in equity markets. In Europe, the main markets rise more than 0.50% on average. Wall Street futures are trading higher with gains of around 0.65%. The combination of this, along with yields, mean that the yen is losing ground on all fronts.
The dollar despite the advance of USD/JPY it loses ground against most currencies. The DXY falls 0.31%, and it is around 104.00. With no big-hit data ahead, focus is on where last week’s inflation numbers from the US left off. The low volume in the markets is expected to continue.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
