The dollar hovered near a five-month high well above the 93 level in Asia on Friday morning, after climbing to its highest level this year at 93.46 overnight. Japan reported CPI data that was far from expectations and failed again to meet the 2% inflation target, thus making the yen falling weaker.
The US dollar index tracking the greenback against the last six major currencies was at 93.38.
The 10-Year Treasury Yield was cited as a driver for the dollar. The yield continues to rise to 3.122%, adding 0.43% on Friday morning - the highest level of 2011. Higher yields led to a surge in demand for the greenback.
The USD / JPY pair rose 0.18% to 110.97. Year-on-year Japan's National CPI for April missed expectations, coming in at a value of 0.6% compared to the 0.7% forecast. Inflation continues to lag behind the Bank of Japan's target of 2%. Two days ago, the country's GDP also missed expectations and ended the longest economic growth since the 1980s.
In China, the People's Bank of China (PBoC) issued the yuan vs dollar exchange rate at 6.3763 compared with 6.3679 the previous day. The USD / CNY pair rose 0.06% to trade at 3707.
Regarding the latest developments of China-US trade talks, China is reportedly offering to US President Donald Trump a $ 200 billion annual trade deficit cut. Investors continue to monitor developments, which could be a direct driver of trend for Asian bourses. If stocks rally, the anti-risk yen may fall while the Aussie-related sentiment is able to rise.
Meanwhile, AUD / USD was up 0.04% at 0.7515.