The USD/JPY continues to rise, reaching a new 15-month high on Thursday.
The US dollar is expected to rise if US Treasury yields rise, according to ISM data.
On mixed economic data and the revival of COVID-19 in Asia-Pacific, the yen gave up gains.
The USD/JPY pair maintained its gains from the previous session and is on track to establish a new high in the last 15 months. On Thursday, the pair began at the high level and settled within a narrow trade band with an upside bias.
The USD/JPY currency pair is currently trading at 111.21, up 0.10 percent on the day.
The increase is mostly motivated by the strengthening of the US dollar. On risk aversion and market volatility, the dollar is trading at 12-week highs at 92.40.
Concerns over the spread of the highly contagious Delta variety frightened the market, and investors flocked to the US dollar.
Meanwhile, the 10-year benchmark yields in the United States are trading higher at 1.46 percent, up 1.12 percent. Long-term Treasury yields increased from 1.35 percent on Wednesday to 1.47 percent intraday.
The Japanese currency, on the other hand, has been under pressure since Japanese Chief Cabinet Secretary Kato said that if economic sentiment improves, the government will review the situation before deciding whether to proceed with another stimulus program.
In June, the au Jibun Bank Japan Manufacturing PMI (PMI) was 52.4, compared to a market expectation of 51.5.
According to the Bank of Japan’s Tanken poll, business mood among Japan’s large manufacturers has improved to its highest level in 13 years.
Concerns about growing commodity costs and the introduction of additional COVID-19 varieties keep the economy vulnerable to the negative. These policymakers’ remarks had a negative impact on the yen.
Investors will be able to respond to US Initial Jobless Claims data, Markit Manufacturing Purchasing Managers Index (PMI), and ISM Manufacturing PMI data on the economic calendar./n
