Japanese Yen Surges on Rising Yields and Hawkish Fed Comments

The Japanese Yen has strengthened against the US Dollar due to rising 10-year JGB yields and hawkish comments from Federal Reserve officials.

The USD/JPY pair weakened to near 157.85 in Thursday's Asian session, while Japan's 10-year JGB yield rose 8 basis points to 3.055%, its highest since August 1996.

Fed Governor Michael Barr said that further interest rate hikes are likely needed to bring down inflation, which could support the Dollar's upside.

Japanese Finance Minister Satsuki Katayama stated that the principles on foreign exchange established since the coordinated Japan-US intervention remain in effect, suggesting caution from Japanese authorities.