Dollar Hits Four-Decade High Against Yen Amid US Economic Resilience
The USD/JPY pair is trading near its highest level in almost four decades, stabilizing around 163.70.
This performance reflects a widening gap between the economic fundamentals and monetary policy outlooks of the United States and Japan.
Investors continue to favor the U.S. dollar for its superior yield, while the yen remains under pressure due to Japan's more accommodative monetary policy.
The resilience of the U.S. economy is driving the dollar's strength, with stronger-than-expected expansion in private-sector activity reported in the latest Purchasing Managers' Index (PMI) data.