On Friday, the USD/JPY extended its losses from the previous session.
The demand for the US currency is being harmed by lower US Treasury yields.
In a risk-averse environment, the yen benefits from its safe-haven allure.
Following the previous day’s dramatic negative movement, the USD/JPY is trading slightly lower in the early Asian session on Friday. As risk sentiment in the US deteriorates and global growth fears deepen, the pair dropped more than 100 pips.
The USD/JPY is currently trading at 109.78, down 0.02 percent for the day.
Following the drop in US 10-year benchmark yields, the US Dollar Index (DXY) dropped from its 13-week high as concerns about a slowdown in US and global growth lingered.
On predictions that the Federal Reserve will not tighten monetary policy soon, US Treasury rates fell 1.30 percent.
The number of initial jobless claims in the United States was 373, which was higher than expected by the market. The data revealed that the labor market recovery is still lagging behind the Fed’s expectations.
The US currency was under pressure due to lower bond yields and weak economic statistics.
The Japanese yen, on the other hand, benefited from the global equities sell-off. The safer assets were boosted by the unfavorable sentiments around equities and government bond yields.
Investors are currently awaiting the release of US Wholesale Inventories data to determine market sentiment./n
