Usd/Jpy Tumbles To Near 143.50 Amid Tariff Worries
The USD/JPY pair extends its downside to around 143.55 during the Asian trading hours on Friday, pressured by the weaker US Dollar (USD). The uncertainty surrounding the tariff policy and the concerns over the global economic slowdown encourage investors to safe-haven currency like the Japanese Yen (JPY).
US President Donald Trump said on Wednesday he would temporarily lower duties on dozens of countries but ramped up the tariff on China to 125% from 104%. The looming threat of both global and US recession, driven by aggressive trade policies and uncertainty over future measures, drags the Greenback lower.
Traders anticipate that the US Federal Reserve (Fed) will resume cutting interest rates in June and probably lower its policy rate by a full percentage point by the end of the year. According to the CME FedWatch tool, derivatives markets now imply a 44% possibility that the Fed will cut rates at its next meeting on May 6-7, up from 14% a week ago.
Source: FXStreet