World stocks hovered near record highs on Friday, buoyed by the Federal Reserve’s 50 basis point rate cut earlier this week. Investors were reassured that the Fed’s move was a proactive measure to support a resilient economy rather than an emergency response to labor market weakness.

Meanwhile, the yen weakened after Bank of Japan Governor Kazuo Ueda tempered market expectations regarding imminent rate hikes, signaling caution due to uncertainty in the U.S. economy. The dollar gained 1.2% against the yen, reaching 144.29, its strongest level in two weeks, after initially dipping to 141.74 following the BOJ’s decision to keep rates unchanged.

The dollar index steadied after recent losses, with Fed Chairman Jerome Powell emphasizing that while the labor market remains a key focus, it is not currently driving inflation concerns. This sentiment has provided further support for riskier assets, boosting investor confidence across global markets.