Branch2 Intelligence

Yen sinks to four-decade low as dollar gets yields boost

IN · 2026-07-01

Key takeaway

USD/JPY hits 40-year high as US Treasury yields surge on hawkish Fed expectations.

Step 11st-order: US Treasury yields rise on hawkish Fed expectations, strengthening the dollar.
Step 22nd-order: Dollar strength pushes USD/JPY to 40-year high, triggering intervention warnings from Japan.
Step 33rd-order: Higher US yields transmit to UK gilt yields via cointegration, raising SME borrowing costs.
Step 44th-order: UK SMEs face imported inflation from dollar-denominated inputs and higher financing costs.

This is automated analysis for information only. It is not investment advice, not a recommendation, and not a solicitation to buy or sell any security. Branch2 is not authorised or regulated. Do your own research.