Japanese Yen depreciated by 0.59 percent in yesterday’s trading session on the back of strong dollar and divergence in monetary policy. Bank of Japan kept its monetary policy untouched including the pace of asset purchases at 80 trillion Yen annually. In intraday Yen touched a high of 111.6 and closed at 111.53 against Dollar.
Yen is expected to trade with negative bias on the back of strong dollar and divergence in monetary policy. Traders will remain cautious ahead of comments from FOMC member Fischer. US Federal Reserve raised funds rate by 25bps and said it was prepared to continue with its monetary policy tightening, whereas, Bank of Japan continued with its loose monetary policy.
However, demand for safe haven will improve ahead of talks over the terms of Britain exit from EU, escalating geopolitical tensions and political uncertainty in US and UK. JPYINR June expected to trade in a range between 57.50 on lower side and 58.30 on higher side with sideways down trend.
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