Bank of Japan Signals Further Rate Hikes Amid Trump Tariffs and U.S.-China Tariff Progress; Yen Rises to 148

The Bank of Japan (BoJ) board members have indicated their intention to continue with further interest rate hikes, while emphasizing the need to remain cautious due to uncertainties stemming from U.S. tariff measures. The BoJ's recent meeting summary highlighted concerns about the impact of U.S. tariffs, particularly those related to the Trump administration, on Japan's economic outlook. Meanwhile, progress in U.S.-China tariff negotiations has eased market concerns, leading to a strengthening of the Japanese yen, which briefly rose to the 148 yen level against the U.S. dollar. However, after the initial gains following the tariff agreement, the dollar retreated to around 147 yen amid profit-taking. The yen's appreciation reflects reduced caution over U.S. tariff policies and growing expectations of additional BoJ rate hikes.