Yen hits lowest level since 1998 as U.S. rates rise

The yen tumbled to its lowest against the dollar in 24 years on Monday, as the gap between Japanese and U.S. benchmark yields widened after red hot U.S. inflation data drove U.S. Treasury yields higher.

The dollar rose as high as 135.22 yen, its highest since October 1998, having gained for each of the past seven sessions.
The policy divergence between hawkish central banks overseas and the dovish Bank of Japan (BOJ) becomes ever more apparent.
The benchmark U.S. 10-year yield touched 3.2% early on Monday, after gaining nearly 12 basis points on Friday.
The yen fell to a three-and-a-week low against the dollar on Monday as investors continued to worry about the impact of a more hawkish Federal Reserve.
The euro was languishing at $1.0490, down 0.23%, and sterling was lower at £1.2287, taking little support from expectations the Bank of England will raise rates this week.

The risk-friendly Australian dollar lost as much as 0.6% falling to $0.6998 as higher rates drove investors to perceive safer assets.
Meanwhile, bitcoin dropped to an 18-month low hitting $24,888 after lending firm Celsius Network temporarily halted operations.

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