Dollar subdued as traders weigh tariffs; yen surges on BOJ bets
The dollar's decline against a range of currencies reflects investors' caution amidst uncertainty over US President Donald Trump's tariff plans, while the yen's surge suggests growing expectations for further rate hikes by the Bank of Japan. The yen's rise to multi-week highs underscores the market's increasing confidence in the BOJ's ability to take decisive action on monetary policy. Market players are closely watching geopolitical developments, including tensions between the US and China, which could have far-reaching implications for global trade.
- The dollar's weakness may be a short-term phenomenon, but its impact on global markets is likely to be more pronounced if Trump's tariff plans lead to a significant escalation of trade tensions.
- How will the evolving dynamics of Sino-US relations influence the performance of major currencies in the coming months?