The Bank of Japan and Swiss National Bank face policy dilemmas as their currencies’ Trump-related surges threaten export economies:
Central Bank Challenges:
| Metric | Japan | Switzerland |
|---|---|---|
| Tolerance Level | 140/USD | 0.85/EUR |
| Intervention Tools | $120B reserves | Negative rates |
| Industry Pressure | Toyota lobbying | Swatch Group warnings |
Policy Paradox:
- Stronger currencies help combat inflation (BOJ’s #1 priority)
- But hurt key exporters: Every 1 yen gain → ¥80B Honda profit drop
Market Expectations:
- 68% chance BOJ intervenes by June if hits 138/USD
- SNB may cut rates to -1.0% if franc strengthens past 0.88/EUR
