Yen Extends Wild Ride, Mounting Bounce Back From Four-Year Low

(Bloomberg) -- The yen’s wild ride over the past month continued on Wednesday, when the Japanese currency posted its biggest gain since August -- fresh off of hitting a four-year low against the dollar on Tuesday. 

The dollar-yen pair has seen a number of drastic moves in November: the yen started as the best-performing Group-of-10 currency through the first third of the month, before giving up all of its gains in a single day and then proceeding on to the multi-year low.  

The moves have as much to do with the U.S. as with Japan, being driven heavily by the swings in U.S. Treasury yields amid speculation about the impact of rising inflation and how soon the Federal Reserve will raise rates. 

The Tuesday move, which prevented the yen from crossing the key 115 to the dollar level, comes as long-end Treasury yields declined, with the 30-year rate falling as much as 3 basis points to just under 2%.

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