- USD / JPY rose to its highest level since July 2020.
- The 10-year US Treasury yield has risen more than 3%.
- The US Dollar Index is posting strong gains above 91.50.
The pair USD/JPY it extended its daily rally during US business hours and touched its highest level since July at 107.88. At time of writing, the pair was up 0.82% on the day to 107.86.
Powell downplays bond market concerns
A sharp rally in US Treasury yields allowed the dollar to gain traction against its main rivals.
While speaking at the Wall Street Journal Jobs Summit on Thursday, FOMC Chairman Jerome Powell repeated that the current monetary policy setup is appropriate. When asked about rising Treasury yields, Powell made a general statement and said they would be concerned “about a persistent tightening of financial conditions in general.”
Fueled by these comments, the yield on the US 10-year Treasury took a sharp turn and was last seen gaining 3.4% on the day at 1,536%. Meanwhile, the US dollar index rose to its highest level since early February above 91.50.
No major macroeconomic data from Japan will be released during the Asian session on Friday and investors will remain focused on Treasury yields until the US Bureau of Labor Statistics releases the February Non-Farm Payroll (NFP) report. .