- USD/JPY extends the previous session’s gain in the initial Asian trading hours.
- Higher US Treasury yields underpin the demand for the US dollar
- US Dollar Index remains steady above 92.30, Inflation data eyed.
USD/JPY edges higher with the previous day’s gains in the Asian session on Tuesday. The steady movement in the US dollar keeps USD/JPY on the upper side.
At the time of writing, USD/JPY is trading at 110.33, down 0.01% for the day.
The US 10-year benchmark yields rebound from the early lower levels near 1.33% amid the concerns that the economic recovery has passed and growth is slowing in the US.
Investors rushed to the US dollar as infection rates of the coronavirus variant accelerated weighed on investor’s risk-appetite.
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 Japanese yen lost its ground on bleak economic recovery prospects due to renewed virus concerns and lag in the vaccination program.
Meanwhile, data released on Monday showed that the Japanese wholesale prices continued to surge in June as import costs remained high at the fastest pace on record.
As for now, the dynamics around the US dollar continue to influence the pair’s performance.