The Japanese yen fell to a two-week low against the dollar Wednesday, pressured by renewed uncertainty over the Bank of Japan’s policy outlook.
The currency weakened 0.5% to 156.70 per dollar, after touching 156.82, its lowest level since February 9.
Investors reacted to reports that Prime Minister Sanae Takaichi expressed reservations about further rate hikes, dampening expectations of near-term tightening.
Tensions with China escalated after Beijing expanded export controls on Japanese firms, adding geopolitical strain to already fragile market sentiment.
Japan also nominated two stimulus-leaning academics to the BOJ board, reinforcing perceptions of a potentially more dovish policy stance.
Attention now turns to Nvidia’s earnings, whose heavy S&P 500 weighting could significantly influence global risk appetite.
The Australian dollar gained 0.35% on firmer inflation data, while the euro edged higher, largely driven by broader dollar dynamics.
Meanwhile, the yuan held near multi-year highs, as China signaled it would assess potential responses to evolving U.S. tariff policies.
