Mitsubishi UFJ: U.S. inflation data is higher than expected, yen is under pressure, and dollar strengthens

Michael Wan, an analyst at Mitsubishi UFJ, said that after U.S. inflation data was higher than expected, the yen became the currency with the most obvious pressure as the dollar re-strengthened. The U.S. dollar fell to around 157.88 against the Japanese yen, close to the high set on May 6. The market expects the Federal Reserve to further tighten policies, pushing the yield on 10-year U.S. bonds to its highest level since July last year, and the yield on 30-year U.S. bonds to exceed 5%.