MUFG: US inflation data higher than expected, dollar strength puts pressure on the 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 during the renewed dollar strengthening. As the market begins to price in the possibility of further policy tightening by the Federal Reserve, the USD/JPY pair is once again approaching its previous highs. Michael Wan pointed out that with market expectations for the Fed's policy outlook turning hawkish again, the dollar is poised for a third consecutive day of gains, with the yen bearing the brunt and falling to around 157.88 against the dollar, approaching the high set on May 6. More broadly, this week's higher-than-expected CPI and PPI data have led traders to anticipate an additional approximately 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 yield on the 30-year US Treasury note above 5%. (Jin Shi)