Currency Volatility: Yen Surges as Trump Signals Trade Policy Shift

The yen rose after the BOJ hiked rates and adjusted inflation forecasts. In contrast, Trump's potential shift in tariffs against China boosted the Australian and New Zealand dollars. Markets responded to BOJ and Trump announcements, reflecting significant currency fluctuations and strategic shifts in trade expectations.

The yen rose notably following the Bank of Japan's decision to hike rates and adjust inflation forecasts. This move, expected by policymakers, resulted in a 0.4% strengthening against the dollar, reflecting confidence in Japan's economic trajectory.

Meanwhile, the Australian and New Zealand dollars experienced similar surges after U.S. President Donald Trump suggested potential shifts in tariff policy against China, hinting at a more conciliatory approach in his recent interview.

These developments, alongside volatility induced by Trump's other remarks, significantly impacted global currency markets, setting the stage for strategic shifts and influencing investor expectations ahead of crucial policy meetings.

(With inputs from agencies.)