Yen Takes Center Stage as Bank of Japan Poised for Rate Hike Amid Dollar’s Downturn
The yen is in focus as the Bank of Japan is expected to raise interest rates, affecting global currency markets. The dollar faces a steep decline amid President Trump's policy comments, while the yen fluctuates due to anticipation around the BOJ's policy decisions and Japan’s rising inflation rates.
The yen commanded attention in the currency markets on Friday, with the Bank of Japan (BOJ) on the brink of an interest rate hike, while the dollar approached its least favorable week in two months.
As the BOJ wrapped up its bi-day policy convention, the market anticipated a 25-basis-point uptick, with prior signals from BOJ authorities supporting such a move. The yen remained mostly unchanged at 156.11 per dollar, lingering near its one-week low from the previous session.
Meanwhile, the dollar encountered significant setbacks, exacerbated by President Trump's unmaterialized tariff pronouncements, resulting in its most substantial rate decline since November. Enhanced market buzz surrounded the rise in Japan's inflation, anticipated to precipitate an uptick in borrowing rates.
(With inputs from agencies.)
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