Dollar-Yen Pair Surges on Rising US Interest Rates

The dollar-yen pair rebounded in New York trading on the 20th, closing at 159.05 yen. This represents a gain of approximately 88 sen compared to the previous business day's close of 158.17 yen.

This uptrend is largely attributed to the increase in U.S. long-term interest rates. The benchmark 10-year Treasury yield climbed to the 4.71% range, while the ultra-long 30-year yield rose to the 5.26% range.

Concerns over Japan's fiscal situation and the widening U.S. fiscal deficit also contributed to the yen's weakness. Major U.S. technology companies' AI investments and rising crude oil prices further fueled inflation concerns, pushing yields higher.