Dollar Keeps on the Rise — It Just Hit a 38‑Year High vs the Yen
The US dollar has built on Monday’s bounce and is looking bright as ever. It’s trading at its strongest level against Japan’s yen in almost four decades, thanks to a surge in U.S. Treasury yields and the buzz around a possible second term for Donald Trump.
Why the Dollar is Feeling So Good
- Higher U.S. Yields: Investors are lining up for better returns on Treasury bonds, which lifts the dollar.
- Trump’s Return? Maybe. The idea that the former President could run again fuels speculation that the U.S. might face higher tariffs and more borrowing.
- Inflation & Tightening: More debt could drive up prices, prompting the Fed to hike rates even harder.
The Yen’s Rough Ride
The widening interest‑rate gap between the US and Japan keeps putting pressure on the low‑yielding yen. It’s sliding toward its weakest spot against the dollar since 1986. Japanese officials are on the alert: Finance Minister Shunichi Suzuki has warned of keeping a close eye on the markets and hinted at a potential intervention to steady the yen.
Next Moves on the Market Wheel
Everyone’s eyes are on the upcoming U.S. non‑farm payroll (NFP) data and on statements from Federal Reserve Chair Jerome Powell. These pieces of intel could tip the scale for U.S. yields and the dollar’s trajectory.
