The yen experienced volatile trading after the Bank of Japan (BOJ) raised interest rates by 25 basis points at its policy meeting, aligning with market expectations. The currency settled at 156 per dollar, with investors awaiting BOJ Governor Kazuo Ueda's briefing for further guidance on rate hikes.
Other currencies saw notable movements, with the euro inching up 0.08% to 162.71 yen and the pound gaining 0.17% to 192.99 yen. Japan's core consumer prices rose 3.0% year-on-year in December, the fastest pace in 16 months, adding inflationary pressure.
The Australian and New Zealand dollars surged following U.S. President Donald Trump's softer stance on China tariffs, revealed during a Fox News interview. The Aussie climbed to $0.6321, while the kiwi reached $0.5708, both hitting five-week highs. These currencies, proxies for the Chinese yuan, benefited alongside the yuan itself, which hit its strongest levels since December at 7.2450 per dollar onshore and 7.2519 offshore.
Trump’s comments also triggered a broad decline in the U.S. dollar, which fell 0.23% to 107.89 against a basket of currencies, marking its worst weekly loss in two months. The euro rose 0.24% to $1.0441, and sterling advanced 0.32% to $1.2391, with both on track for strong weekly gains. Market sentiment shifted as investors priced out tariff risk premiums from the dollar.
Meanwhile, Bitcoin climbed 0.51% to $103,648.55, and Ether gained 1.75% to $3,305.51, as Trump announced a cryptocurrency task force to regulate digital assets and explore a national crypto stockpile, signaling a significant policy shift.


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