As the first quarter comes to an end, the US dollar surged against the Swiss franc, Chinese yuan, and Japanese yen, earning warnings from Japanese government officials.

The dollar/yen exchange rate reached a 34-year high, topping earlier highs from 2022 that prompted Bank of Japan intervention.

The weaker yen was welcomed by Japanese equities as an extra boost to exports, with the Nikkei benchmark increasing by about 1%.

Other Asian currencies, particularly China’s yuan, are often under pressure from the declining value of the yen.

Chinese equities fell to levels close to one-month lows, while Chinese industrial profits increased at the beginning of the year.

The largest withdrawal since mid-January occurred, with nearly $1 billion being sold through the Stock Connect system.

The dollar is higher overall due to slightly more hawkish comments made by the Federal Reserve regarding the trajectory of policy rates through the end of the year and beyond.