The U.S. dollar traded stronger on Tuesday following a 10 -year increase in U.S. treasury yields, pushing yen trading to plunge to a 20 -year low.
The readings of the U.S. NFP employment data published last Friday, are essentially seen as mixed.
According to the Bureau of Labor Statistics, there was an increase of 390,000 jobs in May from 436,000 recorded in April. This reading exceeded expectations for an increase of 325,000 jobs.
While the unemployment rate remained at 3.6%, falling short of expectations to continue to decline at 3.5%.
Despite being mixed, the US dollar remained strong following continued expectations that the Federal Reserve (Fed) would maintain its aggressive move in tightening policy.
Ahead of the FOMC policy meeting on June 15 which is expected to raise interest rates by 50 basis points, investors will scrutinize the reading of inflation data on Friday this week first for an indication of how long the Fed will maintain its hawksih direction.
On the other hand, the yen slipped back to its latest 20 -year low in the Asian session, with the price hitting 132.65 against the US dollar weighed down by statements from the Governor of the Central Bank of Japan (BOJ) and higher US bond yields.
Governor Haruhiko Kuroda said on Friday that the central bank’s main focus is to support the economy, stressing it will not budge from maintaining a very loose policy.
10 -year US bond yields rose to a one -month high of 3.06%, adding to the pressure on the yen.
