Japanese Yen depreciated by 0.42 percent in yesterday’s trading session on the back of strong dollar and divergence in monetary policy. However, sharp downside was prevented as demand for safe haven improved on worries over political uncertainty in Europe and Greece bailout and fear of new Scottish independence referendum vote. In intraday Yen touched a low of 112.83 and closed at 112.67 against Dollar.
Yen is expected to trade with positive bias as the demand for safe haven may increase on political uncertainty in Europe ahead of French Election in April and German in September and concern over Greece bailout. Further, demand for safe haven may improve on worries over British exit from EU, new Scottish independence referendum vote, fears over global economic slowdown, and volatility in crude oil prices.
Traders will remain careful ahead of debate in parliament over Brexit and U.S. President Donald Trump speech. Trump is expected to give some details on infrastructure spending and tax plans. However, sharp gain may be prevented on the back of strong dollar and disappointing economic data from Japan. Japan Prelim Industrial Production declined by 0.8 percent in January compared to 0.7 percent rise in December. JPYINR March expected to trade in a range between 59.40 on lower side and 59.90 on higher side with sideways trend.
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