Yen nears a 5-week high as traders focus on the U.S. presidential debate and inflation report

The yen held close to a five-week high. The dollar was down in early trading, and traders are now focused on upcoming U.S. inflation data and the first U.S. presidential debate between Kamala Harris and Donald Trump. The yen’s strength is largely tied to falling U.S. Treasury yields. Overnight, the 10-year Treasury yield slumped, increasing demand for the yen, which tends to track these long-term yields. Given the yen’s traditional role as a safe-haven currency, any potential market volatility from U.S. political developments or economic uncertainties could further support the yen.

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