The dollar held firm after Japan’s new central bank governor said in his first public remarks that it was important to maintain his predecessor’s policy direction by controlling the yield curve.
The ten-year Treasury yield edged closer to the 3.415% mark in Friday’s retreating trade over the Easter holiday. Yields remained high at 3.39% at the start of the week, when many markets in Asia and Europe will be closed.
The dollar rose against the yen on continued strong progress in the US labor market, despite sharp increases in inflation and interest rates.
The increase in jobs was less than the previous month’s mark, and the increase in average hourly wages was less than economists had expected.
The yen fell against its major peers on Monday after US payrolls data steadied further rate hikes by the Federal Reserve, making widening the gap with Japan apparent.
Risk-sensitive New Zealand and the Australian dollar weakened amid volatile US-China relations over Taiwan.
The yen fell 0.42% to 132.71 against the dollar, extending losses from the previous week when data showed the US economy continued adding jobs briskly in March.
The ten-year Treasury yield hit 3.414% in lower trading on Easter Friday. Yields advanced to 3.3718% in Tokyo as many Asian and European markets closed.
Against the euro, the yen retreated by 0.52% to 144.634. It was down about 0.32% against the sterling.
China began three days of military drills on Saturday to simulate strikes against Taiwan after Taiwan’s president returned to the United States.
In other currencies, the sterling retreated 0.022% to $1.2420, while the euro advanced 0.02% to $1.0899.
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