The USD/JPY pair falls further to near 152.00 in European trading hours on Friday. The asset weakens despite some recovery in the US Dollar (USD), suggesting a sheer strength in the Japanese Yen (JPY). The Yen gains after Finance Minister Katsunobu Kato alerted that the administration would take “appropriate action” to address excessive foreign exchange fluctuations.“Will closely monitor the impact of Trump’s policies on Japan’s economy,” Kato added. In the comments from Kato, Trump’s policies point to a hike in import tariffs by 10%, which he promised in his election campaign.Earlier, Democratic Party for the People (DPFP) leader Yuichiro Tamaki also warned that Trump’s protectionist policies could put further downward pressure on the Yen.Meanwhile, the US Dollar Index (DXY), which gauges Greenback’s value against six major currencies, strives to gain ground above 104.00. The US Dollar corrected sharply on Thursday as traders unwinded so-called ‘Trump trades’ and the Federal Reserve’s (Fed) monetary policy guidance was dovish.On Thursday, the Fed cut interest rates by 25 basis points (bps) to 4.50%-4.75%, as expected, and showed confidence over the continuation of the policy-easing cycle with confidence that inflationary pressures remain on track to the bank’s target of 2%.More By This Author:EUR/USD Drops As Trump Victory Keeps US Dollar Upbeat Outlook Intact
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