YEN STRENGTHENS TO 5-MONTH HIGH AGAINST DOLLAR; JAPAN 10 YEAR YIELD AT HIGHEST LEVEL SINCE 2008 ON BOJ RATE HIKE BETS

Published on Mar 13, 2025 16:21

The Japanese yen is hovering around a five month high against the US dollar tracking a sustained weakness in the American currency amid worries of potential economic fallout amid trade tensions induced by US President Donald Trump`s tariffs. Besides, hawkish BoJ amid elevated wage growth and inflation are keeping the benchmark government bond yields at their highest level since 2008. Many of Japan`s biggest companies have met union demands for substantial wage hikes for a third consecutive year, seeking to help workers cope with inflation and retain staff amid labour shortages. This is expected to drive inflation and has led bond yields to a high of 1.575%, supporting a path of continued gradual hikes from the BOJ. USDJPY pair were seen quoting at 148.22, the pair has last witnessed in October last year.