Currency Buzz: USD/JPY Extends Rally To 125 Mark

28 Mar 2022 , 03:31 PM

USD/JPY extended strong up move scaling to 125 mark on Monday, for the first time since August 2015 amid accumulating strength in the dollar as risk-off mood prevailed. The Bank of Japan intervened to stop government bond yields from rising above its key target. The BOJs offered to buy an unlimited amount of government bonds, to stop the sell-off prompted by rising global interest rates. The Japanese central bank repeatedly said it is committed to maintain ultra-loose monetary policy, while the US Federal Reserve stayed aggressive towards faster policy tightening and the talks over the balance sheet normalization. Besides, dollar gained momentum as safe haven currency due to rising cases of Covid-19 in China. The situation of Lockdown in China has underpinned the risk-aversion theme and investors are shifting funds to the safe-haven assets. US 10-year benchmark yields were hovering off early day highs at 2.5%. Meanwhile, the dollar index, which tracks the greenback against a basket of six other currencies was last seen quoting at 99.10, after hitting a high of 99.29.

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