The U.S. dollar extended its grip on Asian currencies for a fourth straight session Thursday, climbing to around 101.23 as Treasury yields hit levels unseen in decades and the yen pressed toward the psychologically charged 160 mark.
USD/JPY traded near 158.46, down 0.3% from earlier sessions but having weakened as far as 159.04 on Thursday — its lowest level since September 2. The pair remains on the cusp of 160, a threshold that has drawn repeated intervention concern from Japanese authorities. The yen has declined for two weeks following the Bank of Japan's policy meeting on September 18.
The dollar index rose about 0.2% on the day, a deceleration from Wednesday's 0.5% gain, but is up roughly 1.1% for the week. The broader rally is underpinned by a sharp jump in long-end Treasury yields: the 30-year benchmark climbed to its highest level since June 2004, while the 10-year yield reached a nearly two-decade peak.
Among regional peers, the Australian dollar was the standout performer on the wrong side, trading near $0.7014 and falling 1.6% for the week — making it the biggest weekly loser against the greenback, according to DBS. The decline followed news that Australia's unemployment rate rose to 4.6% in August, the highest reading since 2021.
The Chinese yuan posted a modest rebound, with USD/CNY rising to 6.7133 for a second consecutive day after three sessions spent below 6.70 — the first time since January 2023 the pair had traded there. The People's Bank of China has increasingly signaled opposition to sharp yuan depreciation.
Elsewhere in Asia, the Korean won strengthened 0.3% to 1,361.75 per dollar, the Indonesian rupiah slipped 0.3% to 17,930.1, the Indian rupee held steady at 96.075, the Malaysian ringgit eased 0.3% to 4.0735, and the Singapore dollar rested near 1.2791.
The dollar's momentum follows the Federal Reserve's 25-basis-point rate hike last week, which lifted the funds rate to a range of 3.75%–4.00%. Meanwhile, U.S. initial jobless claims fell by 1,000 to 197,000 for the week, coming in below the 201,000 estimate in a Reuters poll and adding to the case for persistent Fed tightening.
Oil also contributed to risk sentiment shifts, with crude rising nearly 4% in volatile trading.
