The dollar rose with support from the sharp rise in US Treasury bond yields, pushing the yen to its lowest level in 40 years on Wednesday, while traders awaited an important report on jobs in the United States and increased their bets on the Federal Reserve (the US central bank) raising interest rates soon.
The dollar rose to a new record high of 162.77 yen at the beginning of the Asian session, which is much higher than the levels that prompted Japanese authorities to intervene in the exchange market a few months ago to support the faltering currency.
“We think we are close to potential action,” said Chido Narayanan, head of macroeconomic strategies for the Asia-Pacific region at Wells Fargo, referring to the possibility of another Japanese intervention.
