Yen Dips Amid Policy Doubts and Sino-Japanese Tensions

The yen fell to a two-week low against the dollar on Wednesday as uncertainties over the Bank of Japan's policies and rising tensions with China impacted investor confidence. The drop followed Prime Minister Sanae Takaichi's reservations on interest rate hikes and China's retaliatory export control listing.

Takaichi's recent election victory initially boosted the yen as markets anticipated more stimulus-friendly policies. However, the yen dipped 0.50% to 156.70 against the dollar, its lowest point since February 9, amid ongoing international trade uncertainties.

Japan's move to nominate stimulus-advocating academics to the BoJ's board has stirred market speculation, though experts like MUFG's Derek Halpenny caution that significant policy shifts remain uncertain. Meanwhile, global eyes turn to Nvidia's financial results and its potential market impact.