(Bloomberg) -- The yen fell past 115 per dollar for the first time since March 2017, as the reappointment of Jerome Powell as Federal Reserve chair fueled bets that the U.S. central bank might tighten policy more quickly.
The dollar-yen pair climbed as much as 0.2% to 115.10. Treasury yields jumped overnight, widening the gap with equivalent Japanese government bonds across the curve. Japan’s markets are closed for a holiday Tuesday.
The yen has weakened more than 10% so far this year, making it the worst performer among Group-of-10 currencies. The Bank of Japan has maintained one of the most dovish monetary policy stances among major central banks, while the Fed has begun tapering its asset purchase program.
Fed-Hike Bets Jump as Powell Renomination Spurs Treasury Selloff
While Powell was the favored prediction in markets to win a second term, the possibility that Lael Brainard would get the nod was viewed as possible and likely to put the Fed on a more dovish course.
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