Dollar sinks versus yen with US yields depressed after CPI

The US dollar fell again versus the yen as US Treasury yields slid on the back of low inflation figures calming fears of further rate increases. The dollar-yen pair, which closely follows the 10-year Treasury yield dropped to 3.4252% as a result. Tokyo’s senior FX strategist at Barclays, Shinichiro Kadota, said the new inflation data eases pressure for a future rate hike. Money market traders now only estimate a 5% chance of a quarter point hike in June, with a 95% probability of the rate being paused.