Currencies Surge After Trump's Trade Tariff Softening

The Australian, New Zealand dollars, and Chinese yuan showed strong gains after President Trump's comments on trade tariffs suggested a softer stance against China. Meanwhile, the yen remained stable with the Bank of Japan's rate decision looming. The dollar experienced its steepest decline since November amidst ongoing economic developments.

The Australian and New Zealand dollars clawed their way up on Friday, backed by a softer trade tariff stance from U.S. President Donald Trump. This sought-after relief signalled a possible trade agreement with China, boosting the currencies alongside a rising Chinese yuan.

Contrastingly, the yen exhibited little movement, pausing as the Bank of Japan's imminent rate decision kept markets on edge. Traders speculated a 25-basis-point rate hike could be on the horizon, promising further action to maintain currency stability.

In a broader spectrum, the dollar endured a challenging week, marking its largest descent in nearly two months. Expectations unmet, the dollar stumbled, further pressured by Trump's vocal demands for a Federal Reserve rate cut. Meanwhile, in cryptocurrency markets, bitcoin and ether showed minor gains amid quieted regulatory developments.

(With inputs from agencies.)