USD/JPY retreats from daily highs as US Treasury yields falls
- USD/JPY print mild gains on the last trading day of the week.
- US Dollar Index remains strong above 93.00 despite falling US Treasury yields.
- The yen gains on its safe-haven appeal despite the concerns of the Delta variant.
USD/JPY remains muted with minor gains on Thursday. A pullback correction in the US Treasury yields sponsored the downside performance of the pair.
At the time of writing, USD/JPY is trading at 109, up 0.02 % for the day.
The US Dollar Index, which tracks the performance of the greenback against its six major rivals, trades above 93.50 with 0.47 % gains.
The US 10-year benchmark Treasury yields slip to 1.24% as investors assessed the latest FOMC minutes and prospects of slower global growth. Comments from US Fed Chair Jerone Powell suggested that COVID-19 impact on the economy is not clear.
The US Initial Jobless Claims fell for the fourth straight week to 348K, below the market expectations of 363K.
On the other hand, the Japanese yen gained on its safe-haven appeal even the coronavirus cases remained a concern for the economy.
The Reuters Tankan Sentiment Index for Manufacturers rose to 33 in August, its the highest reading since January 2018.
As for now, investors wait for the Japanese Inflation data to gauge the market sentiment.
USD/JPY additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
