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JPMorgan downgrades emerging FX after Trump tariffs exceed worst-case scenario - REUTERS
LONDON, April 3 (Reuters) - Investment bank JPMorgan downgraded its recommendation for emerging currencies to "underweight" on Thursday after U.S. tariffs exceeded its worst-case scenario.
U.S. President Donald Trump late on Wednesday announced "reciprocal" tariffs ranging from 10% to above 40%.
"While there remains scope for negotiation and de-escalation, we think this round of tariffs is a pivotal turning point for EM fixed income outlook in coming months, as the shock to sentiment and capital flows is likely to endure and requires higher risk premia," the bank said in a note.
