The Japanese yen slipped to a four-year low against the dollar on Wednesday, as the benchmark Treasury yields climbed to a five-month high. JPY is down 0.11%.
- The dollar appreciated against the Japanese currency to as high as 114.585 yen, the first time it hit the level since November 2017.
- The 10-year Treasury yields climbed to a fresh five-month high at 1.6630% in Asia, driving appetite for Japanese investors.
- Researchers believe that risk sentiment remains in the ascendancy, with markets realizing that central banks are getting ahead of the Fed rate hike.
- The dollar index was almost unchanged at 93.822 from Tuesday when it dipped 0.2% to its lowest level for the month at 93.501.
- Other researchers say the latest movement is a momentum play and timing the pullback in JPY crosses.
- They believe it is unlikely to see a rush to cover JPY shorts anytime soon in the dynamic.