The yen showed a rebound yesterday after the Bank of Japan's governor communicated that the decision on whether to raise interest rates would hinge on economic indicators. The yen appreciated by 0.22% against the dollar, settling at 155.99 after a previous slip to a two-week low of 156.82. However, traders remain cautious, noting that the range of movements might still be limited as they look for new catalysts that could drive further price adjustments.

In contrast, the US dollar index saw a slight increase of 0.17% to 97.78, while the euro dipped by 0.14% against the dollar, marking a position of 1.1793. Recent data revealed a modest rise in jobless claims in the US over the past week, with the unemployment rate appearing to stabilize in February. The pound also weakened, falling 0.1% against the dollar to 1.3544, as traders focused their attention on the upcoming elections in Manchester, which are seen as a crucial test for Prime Minister Keir Starmer and the Labour Party.

Additionally, the Chinese yuan gained 0.29% against its US counterpart, indicating some resilience in the face of global economic uncertainties. The movements in these currencies signal a cautious market, with investors keenly observing economic releases and political developments as potential drivers for future currency valuations. As various factors play into this currency tension, the outcome of both domestic and international data releases will be significant for traders and policymakers alike.