Yen at Risk of Further Declines After Breaching Key 140 Level
- Fed has spurred US yields higher, while JGB rates remain mired
- Bloomberg dollar index climbed to a record high Thursday
Japanese 10,000 yen banknotes.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
The yen slumped past the key psychological level of 140 per dollar for the first time in almost a quarter of a century, a move that may extend as the divergence between US and Japanese monetary policy widens.
Fueled in large part by the rise in Treasury yields, the yen fell as much as 0.9% against the dollar Thursday, extending its year-to-date decline to almost 18%. And options markets show traders are betting there might be more to come, with pricing skewed toward contracts that will pay off if dollar-yen keeps rising.