USD/JPY refreshes monthly low near 109.00 amid US Treasury sell-off
- USD/JPY consolidates the previous session’s decline on Tuesday.
- Lower US Treasury yields undermine the demand for the US dollar.
- The yen gains on the upbeat economic data and on its safe-haven appeal.
USD/JPY remains muted in the Asian session on Tuesday. The movement in the US dollar keeps USD/JPY on the lower side.
At the time of writing, USD/JPY is trading at 109.32, up 0.05% for the day.
The US 10-year benchmark yields anchored lower near 1.18% after investors assessed the rising inflation impact on the Fed’s as it could start tapering soon and concerns over the rapid spread of coronavirus delta variant.
The US dollar moved in tandem with the bonds yields and remained lower near the 92.00 mark.
On the other hand, the Japanese yen held the ground on its safe haven appeal as investor’s risk appetite dampens on rising coronavirus infections.
The Japan Consumer Sentiment rose by 1 point to 37.5 in July, its highest in the last 17 months. The au Jibun Bank Japan Manufacturing Purchase Manager Index (PMI) came higher at 53.0 in July.
As for now, investors wait for the US Factory Orders to gauge the market sentiment.
USD/JPY additional levels