- The USD/JPY abruptly falls to about 140.50 while the US president challenges the “autonomous” status of the Fed.
- Donald Trump wants the president of the FED, Jerome Powell, relaxed monetary policy.
- The Boj is expected to continue supporting more increases in interest rates.
The USD/JPY torque falls abruptly to about 140.50 during American negotiation hours on Monday. The pair breaks after breaking below the minimum last week of 141.64 and aims to revise the minimum of 21 months of 139.60. The asset has shown a significant weakness due to a strong drop in the US dollar (USD).
The American dollar index (DXY), which follows the value of the dollar against six main currencies, collapses to about 98.00, the lowest level seen in three years.
Investors sell the US dollar since the president of the United States (USA) Donald Trump has threatened to say goodbye to the president of the Federal Reserve (Fed), Jerome Powell, for not lowering interest rates. Last week, Powell indicated that the economy allows us to stay where we are until we have clarity about how the economic perspective will be molded.
Fed really owes American people to lower interest rates. That is the only thing for which it serves, “Trump said.” I’m not happy with him. If I want it to leave there, it will be very fast, believe me. “Trump said Friday.
The scenario has been seen as a blow to Washington’s confidence in the Fed operations, which is an autonomous institution, and has turned out that investors doubt the status of sure refuge of the US dollar.
Meanwhile, the Japanese Yen (JPY) exceeds the rest since his demand as a safe refuge has increased due to the growing global economic uncertainty amid the absence of clarity on Trump’s tariff policies, although Trump has announced a 90 -day break in the execution of reciprocal tariffs.
Financial market participants anticipate that Trump’s international policies will force central banks to adopt a “accommodating” position worldwide. However, the Bank of Japan (BOJ) is expected to continue supporting the increases of interest rates, said a Reuters report. The agency reported that the greatest risks of higher American tariffs will not divert a cycle of salary and inflation increased as crucial to continue raising interest rates.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
