Australian dollar hits 10-month peak versus yen

The Australian dollar scaled a 10-month peak on the yen and bounced on the US dollar on Thursday, while bond yields soared to multi-month peaks as investors scaled back long-held positions in safe-haven Treasuries. The Antipodean currencies notched solid gains on the yen, which has recently become the funding currency of choice for carry trades in place of the US dollar.
The Australian dollar rose as high as 88.02 yen before running into heavy resistance, having flirted twice this month with the psychological barrier of 88.00. A sustained break would target the May high of 88.75. It was last at 87.90. The kiwi was also well supported versus a broadly weaker Japanese currency, rising 0.5 percent to 68.10 yen. It touched a seven-month high around 68.30 on Wednesday. The New Zealand dollar slipped against the Aussie, which edged up 0.1 percent to NZ$1.2903. Versus a currency basket, the kiwi fell 0.6 percent to 72.74, its lowest in around a week.