MUFG: US inflation data exceeds expectations, USD strengthens putting pressure on JPY

Odaily reported that MUFG analyst Michael Wan said the yen has become the most pressured currency amid the renewed dollar strength following higher-than-expected US inflation data. As the market begins pricing in the possibility of further tightening by the Federal Reserve, USD/JPY is again approaching its previous highs. Michael Wan noted that with market forecasts for the Fed's policy outlook shifting back towards a hawkish stance, the dollar is poised for a third consecutive day of gains, with the yen bearing the brunt as it fell to around 157.88 against the dollar, nearing the high hit on May 6. More broadly, this week's higher-than-expected CPI and PPI data have prompted traders to anticipate an additional roughly 20 basis points of tightening by the Fed over the next year. This has also pushed the yield on the 10-year US Treasury note to its highest level since July last year, and driven the 30-year US Treasury yield above 5%. (Jin Shi)