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U.S. forex market summary: Dollar rises to 157.70 yen level on inflation concerns
The dollar closed at 157.63 yen in New York on Tuesday, up approximately 45 sen from the previous day. The euro was trading at 185.02 yen, down nearly 20 sen against the Japanese currency.
The U.S. Consumer Price Index (CPI) for April rose 3.8% year-on-year, accelerating from 3.3% in March to hit its highest level since May 2023. Rekindled inflation fears dampened expectations for an early Federal Reserve rate cut, pushing U.S. Treasury yields higher. The dollar rose as high as 157.76 yen as investors focused on the widening interest rate gap between the U.S. and Japan. While caution over potential currency intervention by Japanese authorities capped the upside, the pair remained firm as rising crude oil futures fueled concerns over Japan’s worsening trade balance. Meanwhile, higher U.S. yields weighed on the euro against the dollar, which also sparked euro-selling against the yen.
The euro stood at 1.1739 dollars, down approximately 0.0045 dollars from the previous day.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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