The US dollar is declining amid its sharp losses against the Japanese yen.

The US dollar declined during trading on Thursday due to a significant drop against the Japanese yen, which pushed the USD/JPY pair to trade at its lowest level in nearly two and a half months.

The Dollar Now

In trading, the DXY index – which measures the performance of the US dollar against six major currencies – fell by 0.30% to record 106.845 points, while the US dollar declined against the Japanese yen by 1.03%, reaching 149.87 yen, marking the lowest level for the dollar since December 9 against the yen.

At the same time, both the euro – which has a weight of about 0.6% in the US dollar index – and the British pound rose against the US dollar by 0.22% each, recording $1.0446 and $1.2614 respectively, which added further pressure on the US currency.

The losses of the US dollar come at a time when markets are awaiting the release of some important economic data, alongside a decrease in demand for the greenback due to the significant decline in US Treasury yields. The yield on the benchmark 10-year US Treasury bond fell by 0.64% to 4.5%, while the yield on the two-year Treasury note dropped by 0.44%, recording 4.255%.