US Dollar Surges Against Japanese Yen Amid Rising Treasury Yields

The US Dollar (USD) has gained against the Japanese Yen (JPY), rising to near 160.00 in the European trading session on Tuesday.

This surge is attributed to the increase in US Treasury Yields, which have hit a fresh 19-month high at 4.78% and are approaching the multi-year high of 4.81%. The US Dollar Index (DXY) is up 0.2% to near 99.60.

Strategists at BNY Markets note that the rate repricing has been accompanied by a notable move at the back end of the curve, with both the 10y and 30y yields moving much higher since Friday.

The Bank of Japan (BoJ) is expected to raise interest rates this month, with market experts confident about this decision. The Japanese Yen struggles to attract bids despite this anticipation.