Japan downgrades economic assessment for March, worst view in seven years
|Japan’s Cabinet Office is out with its latest monthly economic assessment report for March, which showed that the government downgraded its view on the economy.
Key findings
Sees economy in a 'severe situation, extremely depressed by the coronavirus'.
First time removing the word 'recovering' since July 2013.
Conditions likely to remain severe due to the influence of the disease.
Economy is worsening at a pace comparable to when the 2011 earthquake struck.
And towards levels last seen during the collapse of Lehman Brothers in 2008.
The damage is as bad as those two events put together.
USD/JPY extends the drop amid risk-off
With the Japanese government reporting the economic conditions as severe due to the coronavirus outbreak, the risk-off sentiment intensifies, boosting the safe-haven demand for the yen.
Further, the relentless selling seen in the US dollar vs. its main competitors also collaborates with the latest leg lower in USD/JPY.
The spot is back under the 110 handle, now printing fresh daily low of 109.88, shedding nearly 1.20% so far.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.