U.S. dollar climbs to new 38-year peak vs. yen

The U.S. dollar reached a 38-year high against the yen due to rising Treasury yields, prompting concerns about potential intervention by Japanese authorities. Data revealing a larger-than-expected contraction in Japan's economy further weakened the yen. Meanwhile, the euro strengthened following the French far-right party's success in parliamentary elections. The dollar's surge to 161.72 yen marked its highest level since 1986, with the yen depreciating over 12% this year. Market analysts observed a one-way market trend and speculated on the impact of potential intervention by Japan. The Bank of Japan's upcoming meeting in late July raised uncertainties about interest rate adjustments. Additionally, the euro's rise and the dollar's slight decline against a basket of currencies were influenced by the outcome of the French elections and expectations of a Federal Reserve interest rate cut. Market indicators suggest a growing likelihood of a Fed rate cut in September.