Yen Surges Amid U.S. Recession Fears Triggered by Weak Job Data
The yen hit mid-January highs against the dollar as weak U.S. labor data fueled recession concerns and deeper rate cut expectations by the Fed. This triggered a global selloff in stocks, oil, and high-yielding currencies. Investors sought cash safety, driving further declines in U.S. Treasury yields and other market indices.
![Yen Surges Amid U.S. Recession Fears Triggered by Weak Job Data](https://devdiscourse.blob.core.windows.net/aiimagegallery/18_07_2024_00_38_38_3450272.png)
Japan's yen reached mid-January highs against the dollar at Asia's market open on Monday. The move came after weak U.S. labor data from last week triggered recession worries and expectations for deeper rate cuts by the Federal Reserve.
Friday's job data, combined with weak earnings reports from major technology firms and heightened concerns about the Chinese economy, ignited a global stock and currency selloff. Investors sought the safety of cash, leading to further declines in U.S. Treasury yields and a drop in stock indices.
The yen, a safe-haven favorite, traded at 145.43 yen to the dollar, up 0.8%. Meanwhile, U.S. Treasury yields and major stock indexes remained under pressure, as the market anticipates significant rate cuts by the Fed at its upcoming September meeting.
(With inputs from agencies.)