Greenback pauses vs. yen after getting lift from American yields
On Thursday, the evergreen buck held steady near a three-month peak against the Japanese yen, as surges in American bond yields along with expectations for the Federal Reserve to increase interest rates this year helped to underpin the major US currency.
The greenback last stood at 104.49 yen. Earlier on Thursday, it edged up to as high as 104.695 yen, getting closer to a three-month high of 104.875 yen hit on Tuesday.
Helping to boost the greenback's appeal, the American 10-year Treasury yield gained to 1.813% at one point in Thursday's Asian trade, the highest value since October 17.
With the BOJ seen likely to keep its monetary policy firm for a while and to stick to its pledge to guide 10-year government bond profits around 0%, American bond yields are going to be the key driver for the currency pair dollar/yen.
The market is currently pricing in a 74% probability that the Fed would increase rates by December.