USD/JPY slumps to near 144.30 as Yen’s safe-haven demand increases

• USD/JPY declines to near 144.30 as uncertainty surrounding Trump’s tariff deadline has increased Yen’s safe-haven demand.

• Trump confirms that he will not extend tariff deadline beyond July 9.

• The US and Japan have still not closed a trade deal, while tariff deadline approaches.

The USD/JPY pair falls over 0.4% to near 144.30 during European trading hours on Friday. The pair faces a sharp selling pressure as the safe-haven demand of the Japanese Yen (JPY) has increased significantly, with investors turning cautious over the deadline of United States (US) reciprocal tariffs on July 9.

Market experts struggle to evaluate the impact of tariffs on the global economic growth, prompting investors to stick to safe-haven assets, such as the Japanese Yen.

However, the US Dollar (USD) faces a sharp selling pressure, despite being a safe-haven asset, as economists expect tariffs to weigh on the US economic outlook. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, declines to near 96.90.

Meanwhile, US President Donald Trump has confirmed that he will not extend the tariff deadline and will send letters, outlining additional duty rates, to those nations with whom a trade agreement has not been finalized.

Additionally, the approval of the Trump’s “Big Beautiful Bill” by House of Representatives has also diminished the USD’s safe-haven demand. Economists expect Trump’s signature tax bill to increase the already ballooning national debt by $3-3.5 trillion over the next decade. A scenario that will increase fiscal risks for the economy.

Meanwhile, investors seek fresh developments over trade negotiations between the US and Japan. The Japanese Yen would face selling pressure if Tokyo fails to strike a deal with Washington before the tariff deadline.