Dollar Gains as Global Bond Selloff Stirs Inflation Worries
The US dollar strengthened on September 1 as renewed Gulf attacks sparked a global bond selloff and stoked inflation worries. The yen slid past 160 per dollar again, despite pressure on the Bank of Japan to raise rates.
US Treasury Secretary Scott Bessent said he believed Japan's government and central bank would take action that leads to a stronger yen. However, neither the jump in yields nor Bessent's comments were enough to arrest the yen's decline. The currency traded at 159.99 per dollar after breaching 160 for the third straight session.
Investors remain focused on Japan's still-unfavorable rate differential with the United States and doubts over how aggressively the Bank of Japan will tighten policy, according to Joel Kruger, market strategist at LMAX Group in London.