Yen hits low ground; Asian shares drop on surging bond yields

The Japanese yen recorded a seven-month low against the dollar on Thursday. This came after investors’ vaccine-, and stimulus-driven sentiment greatly supported the greenback and benchmark Treasury yields.

The dollar performed positively, with its index hitting a 0.28% increase. In turn, the yen reached a low record of 107. 06. The decline came to be the sharpest since July as optimism over the U.S. economy heavily boosted the greenback’s performance against other currencies.

Treasury yields also advanced, but this drastically dragged Asian share markets. Investors were still assessing last week’s selloff in government bonds that sent yields up, dragging equity markets and sending shares to subdued levels.

Australian shares declined 1%, while S&P 500 e-minis tallied a 0.25% decline. On Wall Street, shares declined overnight as investors withdrew from tech-related stocks.