Michael Wan: The Japanese yen is under pressure and approaching a high point due to the strengthening of the US dollar

Mitsubishi UFJ analyst Michael Wan said that after higher than expected US inflation data, the Japanese yen became the currency most under pressure during the strengthening of the US dollar, falling to around 157.88 against the US dollar, close to the high point on May 6th. He pointed out that the market's forecast for the Federal Reserve's policy outlook has turned hawkish, and the US dollar is expected to rise for the third consecutive day. This week's CPI and PPI data were higher than expected, driving traders to expect the Federal Reserve to raise interest rates by about 20 basis points in the coming year. The 10-year Treasury yield rose to its highest level since July last year, and the 30-year Treasury yield broke through 5%.