Branch² Intelligence
Yen sinks to four-decade low as dollar gets yields boost
Key takeaway
USD/JPY hits 40-year high as US Treasury yields surge on hawkish Fed expectations.
- Step 1US Treasury yields rise on hawkish Fed expectations, strengthening the dollar.
- Step 2Dollar strength pushes USD/JPY to 40-year high, triggering intervention warnings from Japan.
- Step 3Higher US yields transmit to UK gilt yields via cointegration, raising SME borrowing costs.
Source: IN:Economic Times
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