© Reuters.

(Bloomberg) — The yen fell past 115 per dollar for the first time since March 2017, as the reappointment of Jerome Powell as Federal Reserve chair fueled bets that the U.S. central bank might tighten policy more quickly. 

The dollar-yen pair climbed as much as 0.2% to 115.10. Treasury yields jumped overnight, widening the gap with equivalent Japanese government bonds across the curve. Japan’s markets are closed for a holiday Tuesday.

The yen has weakened more than 10% so far this year, making it the worst performer among Group-of-10 currencies. The Bank of Japan has maintained one of the most dovish monetary policy stances among major central banks, while the Fed has begun tapering its asset purchase program.

Fed-Hike Bets Jump as Powell Renomination Spurs Treasury Selloff

While Powell was the favored prediction in markets to win a second term, the possibility that Lael Brainard would get the nod was viewed as possible and likely to put the Fed on a more dovish course.

©2021 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link