Anna 
The Chinese yuan faced significant downward pressure, exacerbated by a strengthening dollar and mounting expectations of further interest rate cuts by the People’s Bank of China (PBOC).
On Friday, the USDCNY pair spiked by 0.4%, breaching the 7.2 level for the first time since November 2023. Reports indicated that the PBOC took action by selling dollars and purchasing yuan from the open market in an effort to stabilize the Chinese currency.
The depreciation of the yuan coincided with indications from top PBOC officials suggesting the possibility of additional cuts to the bank’s reserve requirement ratio. While such measures aim to inject liquidity into the economy, they also contribute to downward pressure on the yuan.
USDJPY Reverses Post-BOJ Decline, Surges Above 151
The Japanese yen remained relatively flat on Friday, recovering from steep losses incurred after the Bank of Japan (BOJ) announced an interest rate hike earlier in the week.
The USDJPY pair rebounded, climbing back above the 151 level, nearing its highest point in four months.
However, the yen’s decline was somewhat tempered by robust consumer price index data for February, reinforcing the BOJ’s recent policy adjustments.
