News: FOREX-Yen and yuan suffer as Fed eyes faster hikes

The dollar was headed for its seventh consecutive weekly gain on the yen on Friday and its best one-week rise on China's yuan in more than two years as higher U.S. yields hoist the greenback.
China is easing monetary policy and Japan is pinning its government bond yields near zero, while overnight Federal Reserve Chairman Jerome Powell said a 50 basis-point rate hike was on the table at the next meeting in two weeks.
The remark, though more or less in line with market expectations, sent five-year U.S. yields US5YT=RR above 3% for the first time since 2018 and unwound a bounce in the euro.
The euro EUR=EBS last bought $1.0837 and is not far above a two-year low, even though markets are starting to price in higher rates - with German two-year yields DE2YT=RR hitting an eight-year high overnight.
The yen JPY=EBS is down 1.6% for the week and last traded at 128.44 to the dollar, just above Wednesday's 20-year low of 129.43. The U.S. dollar index =USD held above 100 at 100.61.
The yuan CNH=D3 has tumbled through its 200-day moving average this week and made a fresh seven-month low of 6.4830 in offshore trade early in the session.
"The (swaps) market has now priced in 146 basis points of tightening for the next three (Fed) policy meetings," said Commonwealth Bank of Australia analyst Carol Kong.
"The dollar may receive further support from safe haven demand today if the April PMIs generate market concerns about the global growth outlook," she added, referring to purchasing managers index figures due in Europe and the United States.
Growth worries have capped gains in oil prices lately and along with concern about the economic damage from lockdowns in China were a drag on commodity currencies overnight.
The Australian dollar AUD=D3 fell 1% on Thursday and was hovering around its 50-day moving average at $0.7363 in morning trade. The New Zealand dollar NZD=D3 had also dropped 1% overnight and inched lower to $0.6723 on Friday.
Japan's Finance Minister Shunichi Suzuki said on Friday that recent drops in the yen were "sharp," and his remark seemed to cap yen losses even though he added he didn't voice concern about it in a meeting with U.S. Treasury Secretary Janet Yellen.
Japan's core consumer prices rose at the fastest pace in more than two years in March, raising a risk that policymakers might try and strengthen the currency in order to relieve households squeezed by higher energy and imported food costs.
Sterling GBP=D3 hovered at $1.3022.
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	Currency bid prices at 0051 GMT 
 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	   EUR=EBS	$1.0834		$1.0831	 +0.03%		 +0.00%	  +1.0842	 +1.0833 
 Dollar/Yen		JPY=EBS	128.5400	   128.2700	+0.19%		 +0.00%	  +128.5550   +128.3300 
 Euro/Yen		 																			 
 Dollar/Swiss	  CHF=EBS	0.9544		 0.9533	  +0.13%		 +0.00%	  +0.9544	 +0.9535 
 Sterling/Dollar   GBP=D3	 1.3019		 1.3028	  -0.05%		 +0.00%	  +1.3035	 +1.3021 
 Dollar/Canadian   CAD=D3	 1.2598		 1.2584	  +0.13%		 +0.00%	  +1.2600	 +1.2569 
 Aussie/Dollar	 AUD=D3	 0.7357		 0.7371	  -0.19%		 +0.00%	  +0.7377	 +0.7357 
 NZ				NZD=D3	 0.6719		 0.6734	  -0.20%		 +0.00%	  +0.6736	 +0.6719 
 Dollar/Dollar																				   
All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX
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World FX rates	https://tmsnrt.rs/2RBWI5E 
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