The dollar hovered near five-month highs well above the 93 level in Asia on Friday morning, after climbing to this year’s fresh high at 93.46 overnight. Japan reported CPI data that missed expectation and failed to meet its 2% inflation target again, sending the yen lower.
The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 93.38 at 10:47PM ET (02:47GMT).
The rising U.S. 10-year Treasury yield was cited as tailwind for the dollar. The yield further rose to 3.122%, up 0.43% on Friday morning – the highest level since 2011. Higher yields triggered a spike in demand for the greenback.
The USD/JPY pair added 0.18% to 110.97. Japan’s year-on-year National CPI for April missed expectations, coming in at 0.6% versus the estimated 0.7%. Inflation continues to lag behind the Bank of Japan’s target of 2%. Two days ago, the country’s GDP also missed expectation and ended the longest run of economic growth since the 1980’s.
