The dollar headed for its second straight quarter of gains on Friday, jumping to a nearly four-decade high against the yen ahead of key U.S. inflation data, according to Jinshi. Neither the decline in overnight U.S. Treasury yields nor data showing a solid rise in Tokyo's CPI could stop the yen's decline. The yen has fallen 6% against the dollar this quarter and 12% so far this year, the largest drop among G10 currencies, while the euro hit a record low against the yen. Ray Attrill, head of foreign exchange strategy at National Australia Bank, said: "In a low volatility environment, the market's thirst for carry trades remains. After the USD/JPY rose above 160 without intervention, I don't think the market will be as worried as it was before 160."
