Forex
USD/JPY Rises with Higher Yields; Tokyo's Yen Stabilization Efforts Face Further Tests
The USD/JPY currency pair saw an increase of 0.35% on Thursday, closing higher than it had before. This rise is attributed to the boost in US long-term yields, with the 30-year yield reaching its highest level since 2004.
The robust US economy, high energy prices, and concerns over inflation have all contributed to this upward trend. Additionally, hawkish comments from Fed officials have raised expectations of further rate hikes, weighing on the Japanese yen.
Tokyo is facing an uphill battle in its efforts to intervene in the market, as it seems the Bank of Japan (BOJ) will lag behind the Federal Reserve in terms of monetary policy tightening. This has led some experts to question the effectiveness of Tokyo's resolve to stabilize the yen.