The yen rose to 152.89 per dollar, its strongest level since February and near its strongest level of 2026, as investors cut short-yen positions and reassessed the viability of the yen carry trade ahead of an expected Bank of Japan rate increase. Dollar-yen later recovered to 153.80 in Tokyo trading after bargain-hunting and a rise in the U.S. 10-year Treasury yield to around 4.804% supported the dollar. Japan's 10-year government bond yield reached 3% for the first time since 1996, increasing domestic borrowing costs and reinforcing concerns over the unwinding of leveraged yen-funded trades. Jefferies estimated cross-border yen borrowing, a proxy for carry-trade activity, reached a record ¥360 trillion in March. Tokyo Tanshi data showed a 97% probability of a 25-basis-point BOJ rate increase to 1.25%, compared with 52% a month earlier. Bitcoin traded near $77,000-$79,000 as the stronger yen added to volatility in risk assets, while EUR/USD remained pressured by higher U.S. long-term yields.