MUFG: US inflation data higher than expected, dollar strength weighs on yen

Odaily Planet Daily News MUFG analyst Michael Wan stated that after US inflation data came in higher than expected, the yen became the most pressured currency amid the renewed strengthening of the US dollar. As the market begins to price in the possibility of further tightening by the Federal Reserve, the dollar-yen pair is once again approaching previous highs. Michael Wan pointed out that with market forecasts for the Fed's policy path shifting back to a hawkish stance, the US dollar is poised for a third consecutive day of gains, with the yen bearing the brunt as the exchange rate fell to around 157.88, approaching the high set on May 6. On a broader scale, this week's higher-than-expected CPI and PPI data prompted traders to anticipate an additional roughly 20 basis points of tightening by the Fed over the next year. This also pushed the 10-year US Treasury yield to its highest level since July last year, and drove the 30-year yield above 5%. (Jin10)