Dollar Rallies Against Yen as US Rates Rise

The US dollar has made a comeback against the Japanese yen as interest rates in the US rise. The 10-year yield is heading towards 4.93%, giving the dollar a boost. The ¥153 level provided some support, and now the currency is challenging the ¥154.50 level.

The recent inflation data was in line with expectations, which may put more pressure on the Federal Reserve to raise interest rates this Wednesday. This could have further implications for the dollar's performance against the yen.

The Bank of Japan is also worth watching, as it has been taking a dovish stance and keeping interest rates low. However, the US rate hikes are currently taking center stage in the market.