Japanese Yen depreciated by 0.18 percent in yesterday’s trading session on the back of strong dollar and as the demand for safe haven declined on rise in risk appetite in the domestic markets. Demand for dollar increased after comments from Federal Reserve Chair Yellen signaled that US central bank could raise interest rates quickly in the coming year.
However, sharp downside was prevented on upbeat economic data from Japan. In intraday Yen touched a low of 115.61 and closed at 114.86 against Dollar. Yen is expected to trade with positive bias as the demand for safe haven may increase on rise in risk aversion in the global markets and as Investors fear that US President elect Donald Trump could shake market by taking aggressive step on trade policies after he takes office on January 20. Traders to remain cautious ahead of US president elect Donald Trump’s inauguration.
Further, demand for safe haven may improve on worries over British exit from EU, political uncertainty in Europe, fears over global economic slowdown, and volatility in crude oil prices. However, sharp gain may be prevented on strong dollar and divergence in monetary policy. JPYINR Jan expected to trade in a range between 59.30 on lower side and 60.0 on higher side with sideways up trend.
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