Dollar Lifted by Fall in Long-End Japanese Bond Yields

The dollar rises as investors close out earlier short-seller bets against the currency, Bannockburn Capital Markets strategist Marc Chandler says in a note.

Market speculation that Japan will revise its government bond issuance plans to stem recent surges in yields of ultralong bonds has helped spur a short-covering bounce in the dollar, he says. "There has been a sharp drop in Japanese long-term bond yields, and although the dollar is higher against all the G-10 currencies today, the yen is the weakest."

The dollar rises 0.9% to 144.072 yen. The DXY dollar index rises 0.2% to 99.377.