The US dollar surged higher against the Japanese yen following a 10 -year rebound in US treasury yields at the opening of the European session.
The USD/JPY pair soared to its highest level since June and traded around 109.45, as US bond yields rose 1.65%.
However, the greenback dollar failed to react to rising bond yields with the dollar index continuing to trade flat at 92.75.
Following the encouraging US economic data, the US dollar continued to strengthen around the almost 4 -month high against six other major currencies.
The euro rose slightly following slow-moving US dollar trading, but expectations for the euro remained bleak due to pressure from the third wave of Covid-19 and slow vaccination measures across the European Union (EU).
The German Health Minister said that the country’s healthcare capacity is likely to reach its limit in April due to a sharp increase in coronavirus cases.
Meanwhile, commodity currencies also showed slight gains at the start of the European session. Still, recent risks from tensions between China and Australia could limit the movement of the Aussie dollar.
In a statement on Friday, China’s Trade Minister announced that they would impose anti-dumping action on some Australian wine imports for 5 years, effective from 28 March.
