Anna 
The yen strengthened by 0.6% against the dollar following remarks by Bank of Japan (BOJ) member Hajime Takata on Thursday, suggesting that the central bank should contemplate an exit from its ultra-loose policies. Takata advocated for an end to the BOJ’s yield curve control and negative interest rates, citing progress towards achieving the central bank’s 2% inflation target.
Takata’s statements fueled speculation that the BOJ might raise interest rates as early as April, a notion already under consideration following stronger-than-expected consumer price index inflation data released earlier in the week. However, other economic indicators for January, particularly retail sales and industrial production, painted a mixed picture of the Japanese economy, which unexpectedly slipped into recession in the fourth quarter. This economic weakness could potentially delay an early pivot by the BOJ.
In other Asian currencies, movements were relatively subdued on Thursday. The Australian dollar rebounded by 0.4%, recovering sharply from steep losses in the previous session driven by softer-than-expected inflation data. However, underwhelming retail sales data released on Thursday furthered speculation that the Reserve Bank of Australia will have little reason to continue raising interest rates.
The Indian rupee remained flat, with attention shifting to GDP data for the December quarter, expected to show a cooling trend after two years of robust economic growth in India.
The Chinese yuan traded sideways ahead of key purchasing managers index data scheduled for release on Friday, which is anticipated to provide additional insights into Asia’s largest economy.
Similarly, the South Korean won and Singapore dollar both exhibited sideways movement in Thursday’s trading session.
