The yen was held at the mercy of soaring U.S. Treasury yields on Friday ahead of a closely watched rate decision by the Bank of Japan (BOJ), while the dollar stood near a six-month peak on the prospect of higher-for-longer U.S. rates. The Japanese currency was last marginally lower at 147.6 in early Asia trade, languishing near the previous session's more than 10-month low of 148.465. The BOJ is due to announce its interest rate decision later on Friday at the conclusion of its two-day policy meeting, capping off a week packed with central bank policy decisions, and expectations are for the BOJ to stand pat on its ultra-easy monetary settings.
SINGAPORE - The yen was held at the mercy of soaring U.S. Treasury yields on Friday ahead of a closely watched rate decision by the Bank of Japan , while the dollar stood near a six-month peak on the prospect of higher-for-longer U.S. rates.
"Whilst we feel more confident that can achieve their 2% target, we believe there won't be any changes until 2024, with key focus the Shunto negotiations starting next year," said Daniel Hurley, portfolio specialist for emerging market and Japanese equities strategy at T. Rowe Price. The 10-year Treasury yield, which the dollar/yen pair tends to track, peaked at 4.4980% on Thursday, its highest since 2007, while the two-year Treasury yield scaled a 17-year top of 5.2020% the same day. [US/]
The New Zealand dollar similarly slipped 0.06% to $0.5928, though eyed a weekly gain of close to 0.5%.While the Fed kept interest rates steady this week, it signalled the possibility of another hike this year, with rates to be kept significantly tighter through 2024 than previously expected. The euro dipped 0.07% to $1.0655, having fallen to a six-month low of $1.0617 in the previous session.
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