Yen Struggles Amidst Economic Tensions and Board Nominations

The yen traded near a two-week low against the dollar following investor worries over a potential dovish stance from the Bank of Japan and escalating tensions with China. The Japanese currency weakened as news emerged about Prime Minister Sanae Takaichi expressing reservations about interest rate hikes.

Adding to the yen's volatility, China placed more Japanese firms on an export control list, reacting to Takaichi's comments on Taiwan. In political developments, Japan nominated two academics to the central bank's board, both seen as strong supporters of stimulus policies, which could influence BOJ's future direction.

Meanwhile, the financial world watches AI chipmaker Nvidia's upcoming earnings report. With its significant weight in the S&P 500, Nvidia's performance is expected to impact market risk sentiment. Additionally, changes in currency values, such as the Australian dollar's rise due to inflation, highlight the global economic interplay.