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

Odaily Planet Daily News MUFG analyst Michael Wan said that after US inflation data came in higher than expected, the yen became the most pressured currency amid the renewed strength 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 its previous high. Michael Wan pointed out that due to the market's forecast of the Fed's policy outlook turning hawkish again, the US dollar is poised for a third consecutive day of gains, with the yen bearing the brunt, falling to around 157.88 against the dollar, approaching the high set on May 6. More broadly, this week's above-expected CPI and PPI data have prompted traders to anticipate an additional approximately 20 basis points of tightening by the Fed over the next year. This has also pushed the 10-year US Treasury yield to its highest level since July last year and driven the 30-year US Treasury yield above 5%. (Jin Shi)