Dollar rises as U.S. Treasury yields increase, Japanese yen reaches lowest level
(MENAFN) On Tuesday, the dollar experienced a rise, bolstered by an increase in US Treasury yields after the Japanese yen plummeted to its lowest levels since 1986. The benchmark 10-year Treasury yields climbed approximately 14 basis points to 4.479 percent. Analysts attribute this surge to market expectations of Donald Trump winning the U.S. presidency, along with anticipated higher tariffs and increased government borrowing.
As the dollar strengthened, the euro pulled back from a minor rise, influenced by the results of the first round of the French election, which appeared to align closely with opinion polls. The euro was trading at USD1.0735. Meanwhile, the Japanese yen dropped to 161.72 against the dollar on Monday, marking its weakest level in nearly 38 years. This decline is primarily driven by the significant interest rate disparity between the United States and Japan. On Tuesday in Asia, the yen was trading slightly higher at 161.55 against the dollar.
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