The Bank of Japan's (BoJ) decision to tighten its monetary policy and recent interventions to buy yen have led to a stronger yen. As a result, the yen has gained 8% from its 38-year low against the dollar. On the other hand, the People's Bank of China (PBoC) has been cutting interest rates and allowing the yuan to depreciate as part of its strategy to stimulate the economy. The yuan's weakness is also a response to China's economic struggles and trade tensions with the US. The diverging trajectories of the yen and yuan are impacting other Asian currencies, such as the South Korean won, Indian rupee, and Indonesian rupiah. This divergence in monetary policies and currency movements is a crucial development for Asian currency markets. China's preference for a weaker yuan compared to the yen is aimed at countering the effects of deteriorating trade relations with the US. Overall, Asian currencies are at a critical juncture due to these diverging policies and the contrasting strength of the yen and weakness of the yuan. [35f6b15a]