The US dollar jumped to a one -year high against the yen following a surge in US treasury yields that rebounded above 1.70%.
The greenback dollar traded higher around 109.90 against the yen, at its highest level since March 2020. With Japan’s fiscal year ending this month, it will make it the best month for the USD since 2016.
The benchmark US 10 -year bond yield rose to 1.72%, approaching a new 13 -month high recorded previously.
The safe-haven greenback also garnered support as investors worried about a possible collapse of a hedge fund known as Archegos Capital, although those concerns were seen to be easing in today’s Asian session.
U.S. President Joe Biden will unveil his $ 3 trillion infrastructure spending plan on Wednesday, and he is also expected to announce new tax increases.
Meanwhile, the euro continued to weaken near a 4-and-a-half-month low against the USD as the rise in Covid-19 cases in France and Germany left the prospects for European economic recovery increasingly bleak.
The pound, on the other hand, declined below 1.3800 against the USD after recording an increase in the European session yesterday.
