The Dollar/Yen is trading flat early Wednesday after hitting its lowest level since October 11 the previous session. The Forex pair posted its fourth straight loss ahead of U.S. inflation data that could guide the timing of a Federal Reserve interest rate increase.
Weaker U.S. Treasury yields have been weighing on the Dollar/Yen since November 3 when Federal Reserve Chairman Jerome Powell said officials can be patient on raising interest rates – after announcing a start to reducing their bond purchases – but won’t flinch from action if warranted by inflation.
At 05:37 GMT, the USD/JPY is trading 112.874, down 0.006 or -0.01%.
Treasury Yields Pull Back as Producer Inflation Report Comes in as Expected
U.S. Treasury yields fell after producer price inflation data came in as expected. The yield on the benchmark 10-year Treasury note dropped 5.8 basis points to 1.439%. The yield on the 30-year Treasury bond gave up 6.6 basis points, falling to…