0212 GMT - Risk sentiment is likely to "remain deteriorated" in the near term, SMBC's Hirofumi Suzuki says. "Starting today, the (U.S.) reciprocal tariffs will fully take effect," says the chief FX strategist and head of Research Group in Treasury in an email. "Although negotiations for reducing tariff rates have already begun, significant outcomes are unlikely to be seen immediately," Suzuki says. Moreover, retaliatory measures, including counter-tariffs against China's retaliatory tariffs, are occurring, further worsening risk sentiment, he said. "The situation exerts pressure for the Japanese yen to appreciate against the U.S. dollar," Suzuki says. "It is possible that the USD/JPY exchange rate could decrease by an additional 1-2 yen by this weekend," he adds. USD/JPY is 0.5% lower at 145.53. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

April 08, 2025 22:12 ET (02:12 GMT)

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