Published by Global Banking & Finance Review®
Posted on February 26, 2026
3 min readLast updated: April 2, 2026
Add as preferred source on GoogleThe US dollar slipped as upbeat Nvidia earnings lifted risk appetite while investors awaited details on higher U.S. tariffs. The yen firmed on BOJ signals as Treasury yields steadied and crypto fell.
By Karen Brettell
NEW YORK, Feb 26 (Reuters) - The Japanese yen rebounded on Thursday after the head of the Bank of Japan said the decision on whether to increase interest rates will be based on economic data, while overall movements in the market were subdued as traders waited for fresh catalysts.
Bank of Japan Governor Kazuo Ueda said the central bank will continue to raise interest rates if Japan makes progress in achieving its economic and price projections.
A report on Tuesday said Japanese Prime Minister Sanae Takaichi expressed reservations about additional interest rate hikes during her meeting with Ueda last week.
The yen strengthened 0.22% against the greenback to 155.99 per dollar. It had reached a two-week low of 156.82 on Wednesday.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.04% to 97.66, with the euro up 0.02% at $1.1811.
Overall moves were muted, with traders continuing to gauge the outlook for trade tariffs, risk sentiment and the economy.
"With currency markets lacking a clear catalyst for a decisive move out of current ranges, price action is slowing and most major pairs are trading nearly flat against yesterday’s fix," said Karl Schamotta, chief market strategist at Corpay, in Toronto.
"The risk backdrop remains relatively supportive - Nvidia's earnings confirmed continued strength in the artificial intelligence investment cycle, trade policy constraints are growing around the White House, and the U.S. and global economies are proving resilient—but conviction among investors is low, and clear-cut directional trends are nearly absent," he said.
Chipmaker Nvidia posted better-than-expected results for the January quarter on Wednesday and forecast current-quarter revenue above market estimates, helping to boost risk sentiment.
The U.S. tariff rate for some countries will rise to 15% or higher from the newly imposed 10%, U.S. Trade Representative Jamieson Greer said on Wednesday, without naming any specific trading partners or giving further details.
The Federal Reserve is expected to keep rates steady until at least June as it balances elevated inflation and labor market risks, which is adding to the lack of market conviction.
Data on Thursday showed that the number of Americans filing new applications for jobless benefits increased marginally last week and the unemployment rate appeared to hold steady in February amid a stable labor market.
Meanwhile European Central Bank President Christine Lagarde said that policymakers continued to expect inflation to stabilise at their target rate of 2% in the near term, while repeating her "baseline" expectation that she would stay until the end of her term.
Data released on Thursday showed the ECB sold some of its dollar assets early last year and reduced the weight of the dollar in its foreign exchange reserves.
Sterling weakened 0.1% to $1.3544. Domestic political risks remained a key driver, with traders focused on a by-election in Manchester, widely viewed as a key test for Prime Minister Keir Starmer and his Labour Party.
The Chinese yuan strengthened against the dollar in offshore trade, rising 0.29% to 6.837 yuan, the strongest level in almost three years despite the central bank signalling it wanted to curb the currency's rapid gains.
In cryptocurrencies, bitcoin fell 1.99% to $67,566.
(Reporting by Karen Brettell; Additional reporting by Niket Nishant and Gregor Stuart Hunter; Editing by Philippa Fletcher)
The article covers the U.S. dollar slipping as Nvidia’s strong earnings buoy risk appetite, with investors awaiting clarity on higher U.S. tariffs and tracking moves in the yen, yields, and crypto.
Stronger Nvidia guidance boosted risk sentiment, encouraging flows into risk assets and weighing on the U.S. dollar while leaving most major FX pairs broadly steady.
Markets are focused on details of the updated U.S. tariff plan, potential BOJ rate moves in March–April meetings, and the Federal Reserve’s March 18 rate decision.
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