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Yen stays weak versus dollar as US yield gap stays wide

USD/JPY was around 158.10, up 0.17% on the day, with the US 10-year yield near 5.34% versus Japan near 3.10%.

Reported · Written up by our desk · Major Pairs

The Japanese yen remained under pressure against the US dollar on Monday, as a wide yield differential continued to support the greenback, according to FXStreet. At the time of writing, USD/JPY traded around 158.10, up 0.17% for the day.

FXStreet said elevated US yields reflected the spread between the two countries, with the benchmark 10-year US Treasury yield holding near 5.34%, close to levels last seen in 2002. Japan’s 10-year government bond yield was near 3.10%, its highest level in about 30 years, leaving a spread of about 224 basis points.

The dollar also got a lift from broader euro weakness tied to concerns about France’s public finances, FXStreet added. The outlet noted traders showed little reaction to the latest US business activity data, with S&P Global Services PMI revised to 58.8 in September and the ISM Services PMI easing to 54.9.

Latest closeUSD/JPY 157.92 ▲0.0%

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