The Japanese yen fell in Asian trade on Monday against a basket of major rivals, resuming losses against the dollar after a short hiatus on Friday, and plumbing five-week lows as the risk appetite improved in the global markets following progress in US-China trade talks.
The yen is also pressured by higher 10-year US treasury yields before important inflation data, which could provide clues on future Fed interest rate decisions.
The Price
The USD/JPY price rose 0.65% to 146.28, the highest since April 10, with a session-low at 145.70.
The yen rose 0.35% on Friday against the dollar, the first profit in three days away from recent four-week lows.
The yen lost 0.3% last week against the greenback, the third weekly loss in a row as the odds of a Japanese interest rate hike in June declined, while risk appetite improved.
US-China Trade Talks
The US and China ended a round of trade talks in Switzerland on Sunday amid positive signals from both sides on achieving progress on calming trade tensions.
US Treasury Secretary Scott Bessent described the talks as constructive and effective, with progress achieved in tackling disputed issues.
Both sides agreed on establishing a new mechanism for economic and trade discussions to fix future disputes in an orderly way.
Both sides didn’t reveal details yet, but a joint statement will be released on Monday.
US Yields
US 10-year treasury yields rose 0.8% on Monday, expanding the gains for the third straight session and hitting a three-week high at 4.418%, underpinning the dollar.
It comes amid an improving risk appetite in the global markets and before important US inflation data for April tomorrow.
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