The yen tumbled to its lowest against the dollar in 24 years on Monday, as the gap between Japanese and U.S. benchmark yields widened after red hot U.S. inflation data drove U.S. Treasury yields higher, APA reports citing Reuters.
The dollar rose as high as 135.22 yen , its highest since October 1998, having gained for each of the past seven sessions, as the policy divergence between hawkish central banks overseas and the dovish Bank of Japan (BOJ) becomes ever more apparent.
In contrast, the benchmark U.S. 10-year yield touched 3.2% early on Monday, having gained nearly 12 basis points on Friday.
The U.S. two-year yield extended Friday's gains to touch 3.194%, its highest since late 2007.