Yen’s November Gains Evaporate as Two-Year Spread Widens
- USD/JPY upside seen limited given resistance at 115: JPMorgan
- The yen fell most in a month against the dollar Wednesday
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The yen has given up all of its November gains versus the dollar as the yield differential between U.S. and Japanese bonds widens.
The spread between rates on two-year Treasuries and Japanese government bonds reached the highest level in 2021 at about 63 basis points on Wednesday, as higher-than-estimated U.S. consumer price data helped spur a rise in Treasury yields. That’s underpinned broad gains in the greenback and a stunning reversal in the yen’s fate.