Japanese Yen sticks to strong gains; USD/JPY struggles below 144.00 on weaker USD
The buying interest around the Japanese Yen (JPY) remains unabated during the Asian session on Thursday amid the global flight to safety. US President Donald Trump's fresh tariffs threat on Wednesday offset a positive outcome from the high-stakes US-China trade talks.
This, along with rising geopolitical tensions in the Middle East, tempers investors' appetite for riskier assets and boosts demand for traditional safe-haven assets, including the JPY.
Furthermore, the growing acceptance that the Bank of Japan (BoJ) might push for tighter monetary conditions amid signs of broadening inflation in Japan further underpin the JPY.
The US Dollar (USD), on the other hand, retests the monthly low amid bets that the Federal Reserve (Fed) will cut interest rates further in 2025, bolstered by softer US consumer inflation figures on Wednesday. This contributes to the USD/JPY pair's slide below the 144.00 mark.
Source: FXStreet