In addition to the flight to safe havens, the prospect of a further normalisation of monetary policy by the Bank of Japan is also likely to have supported the yen recently. According to statements made by BoJ Chairman Kazuo Ueda this morning, however, the central bank is leaving all options open.
The US Dollar Index (DXY) trades around the 103 area during Wednesday’s session, stabilizing slightly after recent selling pressure, which took it below 102.00.
Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, warned on Wednesday that last week’s wide-ranging tariffs could unsettle people’s expectations about inflation.