The higher US inflation surge appears to have further heightened investor concerns over its impact on global economic growth as most of the world’s central banks act to raise interest rates.
This can be seen from the more severe depreciation of most major currencies against the safe-haven US dollar and yen during the European session.
The yen previously plunged to a 24 -year low against the US dollar when the price touched 135.19, the strongest level since October 1998.
Prices then returned to stability as investors awaited the opening of the New York session which is expected to see a more aggressive appreciation of the USD supported by inflation data and expectations of a US central bank tightening.
The benchmark US 10 -year bond yield continued to peak to 3.23%, an 11 -year high, while the 2 -year yield reached a 15 -year high.
Risk -sensitive currencies, the Aussie and New Zealand dollars depreciated even more following gloomy sentiment hovering in the market.
Investors for both currencies will be featured with Australian jobs data and the New Zealand economy this week.
Meanwhile, pound trading is getting closer to its lowest level for the year after data published at the start of the European session showed UK economic growth continued to decline in April.
