US Dollar Falls Against Yen on Treasury Debt Announcement
The US dollar has fallen significantly against the yen after the US Treasury Department announced it will issue more debt in the long end of the curve.
The nominal amount of debt in the long end is set to double next month, causing concerns about whether this is a form of quantitative easing.
Christopher Lewis, a technical analyst at DailyForex, notes that rates dropped by 9 basis points, driving down the value of the US dollar. He questions why the Treasury Department is taking this action and whether it's a liquidity measure or something more.
Lewis believes that if there is a bigger issue out there, the US dollar will become a popular currency to own, although it remains to be seen whether this will be against the yen given the uptrend and interest rate differential. He notes that dips in the USD/JPY pair have been finding buyers.