US Dollar Strengthens Versus Japanese Yen
The USD/JPY pair published positive reaction to the news about the US treasury yield movement, and increased by 0.59% to the level of 113.25. The expansion of the spread between US government bonds and Japanese government bonds made the US dollar more attractive to investors.
The US government bonds were rather volatile last week, as investors continued to react to the statement about the monetary policy of the US Federal Reserve. The 10-year Treasury yield reached a nine-month maximum of 2.504%. The 2-year yield ended the week at about a nine-year high at 1.895%.
Following a two-day policy meeting, the central bank of Japan said that it supports a short-term interest rate of -0.1%, and the target for 10-year government bond yields is zero.