The greenback surged to its highest level against the Japanese currency in nearly 38 years, driven by the strength of US Treasury yields amid market concerns around a potential second term for Donald Trump.
The widening interest rate differential between the US and Japan could continue to pressure low-yielding currencies like the yen, pushing the Japanese currency to its weakest level against the dollar since 1986.
Japanese authorities closely monitored the yen's depreciation, with Finance Minister Shunichi Suzuki emphasizing vigilance over currency markets, reinforcing concerns about an intervention to stabilize the yen.
Market participants await upcoming US non-farm payrolls (NFP) data and statements from Federal Reserve Chair Jerome Powell for additional insights that could affect the direction of US yields and the dollar.
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