Yen wallows at 40-year low as dollar rally gets yield boost

SINGAPORE/LONDON, July 1 (Reuters) - The dollar hit a 40-year high against the yen on Wednesday as a sharp rise in U.S. Treasury yields boosted the currency ahead of U.S. jobs data ‌that could strengthen the case for a Federal Reserve rate hike this month.

The dollar rose as high as 162.84 ‌yen, well above levels that prompted Japanese authorities to intervene a few weeks ago to support the struggling currency. It was last at 162.71 yen, up ​0.1% on the day.

What impact did Treasury yields have on dollar strength?

How likely is Japanese intervention in currency markets?

What drove the dollar to 40-year highs against yen?

How do jobs data affect Fed rate hike expectations?

"We believe we are close to potential action," said Chidu Narayanan, head of macro strategy for APAC at Wells Fargo, referring to the likelihood of another intervention.

"We are at crucial levels, not necessarily in terms of a target spot level, but levels where the (Ministry of Finance) might need to intervene to retain its credibility."

Traders see Friday's U.S. public holiday as a potential window for Tokyo ‌to buy yen, with thinner liquidity likely ⁠to amplify the impact of any intervention.

Japan's t

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/currencies/articles/yen-sinks-four-decade-low-005558356.html)