By Gina Lee

Investing.com – The dollar was up on Monday morning in Asia. Following the protection of its implicit yield cap, the Japanese currency continued to slide after (BOJ) intervened in the market. The year-to-date record was almost attained.

By 12:11 PM ET (11:11 GMT), the that measures the greenback against other currencies had risen 0.35%, to 99.170

This pair rose by 0.83%, to 123.07.

While the pair rose 0.21% to 0.7528 and fell 0.29%, they were down 0.6950.

This pair was up by 0.13 to 0.6748. However, the pair fell by 0.26 to 1.3154.

After falling to $122.78 per dollar on Friday, the yen lost some of its small gains. The BOJ didn’t defend the target, and the yen suffered a further drop to 122.27 per dollar. After the yield of the Japanese 10-year JGBs climbed to a record 0.245%, the BOJ was willing to buy unrestricted amounts of Japanese 10-year government bonds (JGBs).

“While there’s a chance of near-term correction due to the speed of its rise, we expect dollar yen at high levels to continue well-supported,” Barclays analysts said. Citing monetary policy divergence as well as the negative effects of rising commodity prices on Japan’s terms of trade, they told Reuters.

Japan’s monetary policy must remain loose, deputy chief cabinet secretary Seiji Kihara said on Sunday. BOJ’s approach is more dovish than the U.S. Federal Reserve’s hawkish position, and there are likely to be further interest rate rises as the year goes on.

While the yen has been hurt by rising commodity prices, this has helped commodities currencies. While the Australian dollar was just above its previous four-month high, it was almost at its Canadian equivalent of 1.2496 USD, close to Friday’s two month peak.

Australia will also hand down its budget on Tuesday, with Treasurer Josh Frydenberg saying on Sunday the budget would mark a very significant material improvement to the government’s bottom line.

But, this latest COVID-19 virus outbreak may be a headwind to Australia’s currency. Shanghai is currently in lockdown as it tries to reduce the number of COVID-19-related cases. Dollar was at 6.394, up 0.17 percent on Monday morning.

Meanwhile, “stronger-than-expected Eurozone consumer price indexes will add to rates market pricing for European Central Bank tightening, underpinning the euro,” said the Barclays (LON:) analysts. It was last trading at $1.0973 when it experienced the economic consequences of the Russian invasion in Ukraine on Feb. 24, 2017.

The U.S. latest jobs report including the – is also due Friday.

The data will not have an impact on U.S. expectations for interest rates and the dollar. However, markets are already anticipating several rate increases within 2022.

After climbing to $47,766 during early trading, Bitcoin reached a near $46,800 mark in cryptocurrency. It was the highest price since January 2022.