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Yen Stays Near 158 as Hot U.S. Prices Lift Dollar

Higher U.S. producer prices kept Treasury yields high.

Overview

  • The dollar held in the upper 157-yen range in New York and Tokyo after April U.S. producer prices beat forecasts.
  • The stronger reading on wholesale prices kept long-term U.S. Treasury yields elevated, which typically boosts the dollar against the yen.
  • Market expectations grew that the Federal Reserve will postpone interest-rate cuts this year, encouraging steady dollar buying.
  • A Bank of Japan board member said an early rate hike is desirable in a Kagoshima speech, prompting only a brief bout of yen buying.
  • With a possible June BOJ move seen as largely priced in and no fresh cues from the U.S.–China leaders’ meeting in Beijing, currency moves stayed tight, and the euro hovered near ¥184.9.