Asian Currencies Rise Ahead of BOJ and Fed Meetings as Dollar Softens 
Asian Stock Markets Rally as Japan and South Korea Hit Record Highs Amid Oil Price Concerns 
Oil Prices Surge Amid U.S.-Iran Tensions and Strait of Hormuz Supply Concerns 
Bank of Korea Governor Nominee Warns of Action if Korean Won Weakens Further 
Australia Bans Card Payment Surcharges Starting October 2025 
Iran Proposes Strait of Hormuz Reopening Deal Amid Stalled U.S. Talks 
Bank of Korea Nominee Shin Hyun-song Signals Possible Rate Hike Amid Middle East Inflation Fears 
Morgan Stanley: Fed Rate Cuts Still on Track Despite Oil-Driven Inflation 
Indonesia Fiscal Deficit Outlook: Fitch Signals Flexibility Amid Middle East War Risks 
U.S.-Iran Tensions Escalate as Strait of Hormuz Crisis Disrupts Global Oil Markets 
RBI Clamps Down on Rupee NDF Activity, Banks Face Steeper Losses 
Bank of Japan Eyes Further Rate Hikes Amid Middle East Tensions and Inflation Pressures 
Bank of Japan's Ueda Flags Low Real Interest Rates as Key Factor in Rate Hike Timing 
Bank of America Maintains Forecast for Two Fed Rate Cuts in 2026 Despite Inflation Risks 
The Bank of Japan (BOJ) is widely expected to keep interest rates unchanged at its April 28 policy meeting, maintaining the benchmark short-term rate at 0.75%. This would mark the third consecutive pause following a 25 basis point hike in December. Market expectations have shifted in recent weeks, as policymakers signaled caution amid global uncertainty, particularly tied to the ongoing Iran conflict and its potential impact on economic growth.
Although earlier forecasts pointed to a possible April rate hike, the BOJ’s more measured tone has encouraged a wait-and-see approach. However, the central bank is still likely to maintain a hawkish stance, especially as inflation pressures rise due to higher oil prices and global shipping disruptions. Analysts suggest that Japan’s strong wage growth and persistent inflation could keep the door open for future tightening, with many now eyeing a potential rate increase in June.
Some economists argue that a recent surge in Japan’s consumer inflation could still prompt an unexpected move in April. However, current market pricing leans toward a hold, reflecting uncertainty about how the BOJ will balance inflation risks with economic stability.
The Japanese yen has weakened in anticipation of a policy pause, though the USD/JPY pair has remained below the key 160 level, a threshold that previously triggered government intervention. The BOJ now faces the challenge of stabilizing the currency without tightening policy too quickly. Any hawkish signals from Governor Kazuo Ueda could help support the yen and curb further depreciation.
Meanwhile, Japan’s stock market has surged ahead of the decision, with the Nikkei 225 reaching record highs driven by gains in technology, banking, and industrial sectors. However, elevated valuations increase the risk of profit-taking, particularly if the BOJ signals future rate hikes. Investors remain cautious as geopolitical tensions and monetary policy shifts continue to shape market sentiment.
