BOJ Keeps Policy Unchanged, Increases Vigilance on Intervention, as PBOC Sets Dollar Reference Rate Under CNY7.0

Market Update: Dollar Fluctuates Amid Global Central Bank Moves

As the final North American trading session of the week begins, the US dollar is showing a mixed performance. The Bank of Japan, as anticipated, decided to keep its interest rates unchanged. The yen experienced notable volatility following the announcement, sparking rumors of significant intervention in the currency markets. While we remain cautious about these claims, it is clear that Japanese officials have increased their verbal interventions and may have been monitoring exchange rates closely.

In another significant move, the People’s Bank of China set the dollar’s reference rate below CNY7.0 for the first time since last year, signaling a shift in currency policy. Meanwhile, anticipation is building as President Trump is expected to reveal his nominee for the Federal Reserve Chair in the near future. It remains uncertain whether Jerome Powell will continue in his role beyond May to finish his current term.