The yen fell to a fresh 20-year low against the dollar on Monday, as red hot U.S. inflation data drove up Treasury yields, diminishing the earlier boost from speculation that Japanese authorities could intervene to support the currency.
The dollar climbed 0.43% on Monday to 135 yen, a 20-year peak, and edging closer to the 2002 high of 135.20.
The yen briefly rallied late on Friday when Japan’s government and the central bank said they were concerned by its recent sharp falls.
The benchmark U.S. 10-year yield touched 3.2% on Monday morning, having gained nearly 12 basis points on Friday.
The U.S. two-year yield extended Friday’s gains to touch 3.159% in early trade, a fresh 14-year high.
The dollar index, which tracks the greenback against six peers was 0.3% higher at 104.52, its highest in four weeks.
The risk-friendly Australian dollar lost 0.6% and fell to as low as $0.6998 three and the half week low.
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