The Japanese yen strengthened on Thursday, rising 0.4% to approximately 159.22 per dollar after Bank of Japan Governor Kazuo Ueda hinted at the possibility of an April rate hike.
Although the BOJ maintained its current rate at 0.75% and reiterated that the economy is recovering moderately, Ueda’s hawkish lean provided a boost to the currency.
Meanwhile, the US dollar index dipped slightly to 100.12, though it remains near a four-month high as investors abandon expectations for Federal Reserve rate cuts this year.
Markets are now almost entirely pricing in a “hold” for the Fed’s April 29 meeting, with any potential easing being pushed out as far as 2027.
In Europe, both the euro and the British pound saw modest gains, rising to $1.1468 and $1.3272, respectively. The pound’s movement came alongside data showing that British wage growth excluding bonuses, hit its slowest pace since late 2020.
Similarly, the Australian dollar edged up to $0.7050 despite domestic headwinds. February data revealed an uptick in Australia’s unemployment rate to 4.3%.
The digital asset market did not share in the recovery, as major cryptocurrencies retreated amid the broader geopolitical tension. Bitcoin fell roughly 1.35% to trade near $70,285, while Ether saw a 0.5% decline, dropping to $2,178.
This downward trend reflects a cautious “risk-off” sentiment as traders navigate a heavy schedule of central bank meetings overshadowed by the escalating crisis in Iran.
Currency Power Balance