Global Markets Shift Amid Dollar Downturn and Trade Talks

The global markets are experiencing a shift as Japan's rate hike fuels dollar selling. Trump's softer stance on trade policies has impacted currencies, with China's yuan and Asian currencies strengthening. Key influences include British and European PMI figures and the BOJ Governor's upcoming news conference.

The global markets are witnessing notable changes as Japan's rate hike has added momentum to the Asia session's dollar selling. The initial days of Trump's presidency have shown an unexpectedly softer trade policy stance, affecting currency dynamics worldwide.

The U.S. dollar has depreciated against major currencies, including a 1.7% drop against the euro. Tariffs, generally considered favorable for the U.S. dollar due to its import dominance, are likely to be negotiated as President Trump suggests a less aggressive approach.

Meanwhile, Asian markets saw positive activity with a 1.8% rise in Hong Kong's Hang Seng index. Japan's short-term interest rates increased to a 17-year high, boosting the yen. European and British PMI figures later in the session are anticipated to influence market developments significantly.

(With inputs from agencies.)