Dollar-Yen Surges to Three-Week High as US Yields Rise

The dollar-yen pair surged to its highest level in three weeks, reaching as high as 158.89 yen per dollar during European trading hours on October 10th.

The upward momentum was driven by rising U.S. long-term interest rates, with the 10-year Treasury yield climbing back to 4.66% once European trading began.

This led to increased awareness of widening interest rate differentials between Japan and the U.S., triggering yen selling and dollar buying.

The euro/dollar pair, on the other hand, faced stiff resistance at its high of $1.1567 per euro, with selling pressure intensifying as it approached this level.