Ella 
Ahead of the release of the U.S. Producer Price Index (PPI), the dollar began to weaken before rebounding as market expectations for a sharp interest rate cut by the Federal Reserve eased. The producer price index beat all expectations, prompting investors to reassess the prospects of more aggressive monetary easing. As a result, the dollar strengthened, reflecting a shift in market expectations toward a neutral stance on the possibility of higher interest rates.
According to Jiji news agency, there are signs that the Bank of Japan is preparing to exit its negative interest rate policy at its March 18-19 meeting. The news saw the yen strengthen against the dollar and euro following the report’s release.
However, the yen subsequently weakened against the dollar as it remained closely correlated with the U.S. 10-year Treasury yield. In addition, preliminary results of Japan’s spring wage negotiations are expected to be announced on Friday, with several major companies agreeing to meet union demands for wage increases.
