SINGAPORE, Aug 6 Reuters The U.S. dollar was nursing steep losses on Tuesday, with the yen on the back foot after a sharp rise in the previous session as traders contend with the unwinding of popular carry trades and the prospect of deep rate cuts from the Federal Reserve.

The yen was 0.89 weaker on Tuesday at 145.48 per dollar, after rising for five straight sessions and touching a sevenmonth high of 141.675 on Monday. The yen was also lower against the Australian dollar, euro and sterling.

Last week39;s softerthanexpected U.S. job data, along with disappointing earnings from major tech firms and heightened concerns over the Chinese economy, have sparked a global selloff in stocks and highyielding currencies.

On Monday, the global rush out of riskier assets took a staggering turn as worries that the U.S. is heading for a recession roiled investors.

U.S. central bank policymakers pushed back on Monday against the notion that weakerthanexpected July job data means the economy is in recessionary freefall, but also warned that the Federal Reserve will need to cut rates to avoid such an outcome.

Selloffs that manifest themselves through wild swings in the currency markets are sharp and swift, but usually very short lived, said Jamie Cox, managing partner at Harris Financial Group.

Markets are clearly nervous about the divergent paths central banks are taking, leading to lots of volatility.

Traders are now anticipating 110 basis points bps of easing this year from the…