Yen fell in Asian trade on Friday against a basket of major rivals, extending losses for the second day in a row against the dollar and moving off ten-day highs, as Bank of Japan resumes buying bonds at a normal pace after slowing the pace earlier this week.

US 10-year treasury yields improved after cautious remarks by Fed officials on US inflation despite earlier data that showed a slowdown in US consumer prices in April.

The Price

The USD/JPY pair rose 0.35% to 155.93 yen, with a session-low at 155.30.

The pair lost 0.35% yesterday, after marking a ten-day high at 153.60.

Yen continued to lose ground as US treasury yields rallied, and after weak Japanese GDP data for the first quarter of the year.

The BOJ

The Bank of Japan maintained its normal process and pace of buying government bonds today after a surprise dip in purchases earlier this week.

Japans finance minister Shinuchi Suzuki said the government will work closely with the BOJ to maintain stability and guarantee that there are no conflicts between shared policies.

He asserted that the government is monitoring the forex market and interest rates closely.

The IMF

The International Monetary Fund said that Japan should allow the yen to move flexibly, which would help the BOJ to focus on stabilizing prices through monetary measures.

US Yields

US 10-year treasury yields rose by 0.7 basis points on Thursday away from a six-week trough at 4.313%, in turn underpinning the greenback.

The gains came after cautious remarks by several Fed officials, which hurt the odds of early Fed interest rate cuts in the summer.

New York Fed President John Williams said that a restrictive monetary policy is in a good position, and he believes there are no clear indicators now that would push for changing such policies.