Investing.com – Most Asian currencies recovered on Friday as the dollar weakened following President Donald Trump’s call for interest rate cuts, while the Japanese yen recovered after the Bank of Japan moved ahead with an expected interest rate hike.

The BoJ by 25 basis points, forecasting that inflation will remain stable and close to the annual target in the coming years.

The central bank has indicated that it plans additional interest rate increases if the economic outlook in the coming months is in line with expectations.

The BOJ was widely expected to raise interest rates as markets believed that recent inflation and wage data were encouraging and supportive of plans for increases.

The Japanese yen fell 0.4% after being slightly higher ahead of the interest rate decision.

The dollar has its worst week in 2 months after Trump’s demand for an interest rate cut

Other regional currencies strengthened on Friday and the dollar fell after Trump called on the Federal Reserve for immediate interest rate cuts.

In his speech at the World Economic Forum in Davos, Trump called on OPEC and other oil-producing countries to lower prices. In his opinion, this could lead to a quick resolution of the Russian-Ukrainian conflict by cutting off financial support for Russia’s military efforts.

“As oil prices fall, I will demand an immediate reduction in interest rates, and they should similarly fall around the world,” Trump said Thursday at the World Economic Forum in Davos, Switzerland.

On Friday, during the Asian stock exchange, it fell by 0.3% and was the worst week in two months. Earlier this week, the dollar fell 1.2% after Trump suggested a easygoing approach to tariffs.

were also lower by 0.3%.

Asia FX is seeing explosive growth

With the dollar falling and the prospect of a gradual imposition of U.S. tariffs, regional currencies breathed a sigh of relief and gained sharply on Friday.

The Chinese yuan onshore pair fell 0.4%, while the offshore pair fell 0.4%.

The Australian dollar pair rose by 0.5%.

The Singapore dollar pair fell by 0.4%, while the Malaysian ringgit pair fell by 0.6%.

The Indian rupee pair fell 0.2% while the South Korean won pair fell 0.3%.