Yen sinks to four-decade low as dollar gets yields boost

The US dollar climbed to a fresh four-decade peak of 162.77 against the yen, well past levels that triggered Japanese intervention earlier this year, with analysts suggesting Tokyo may act again around the upcoming US holiday on thin liquidity. The dollar strengthened broadly after the 10-year US Treasury yield jumped nearly 4.8 basis points, with the 2-year yield last at 4.1702%. Traders are now pricing a 67 percent chance of a Fed rate hike in September, up from 20.5 percent a month ago, while upcoming US nonfarm payrolls and a speech by Fed Chair-nominee Kevin Warsh at the ECB Forum in Portugal are in focus.