Yen Falls on Japanese Risk Appetite

The Japanese currency lost versus most of the 16 main traded currencies this Monday after a report published this morning in Japan indicated a higher monthly industrial production, damping demand for refuge currencies like the yen, and the Swiss franc.
In a rather calm trading day as the U.K. and Canada have bank holidays, the yen fell versus all 6 majors, after reports in Japan decreased risk aversion and consequently appeal for the yen, the safest refuge for turbulent times in currency markets, as the Asian nation’s industrial sector raised output at the fastest pace in November during the past few months, inviting traders to purchase riskier assets in Asia and the South Pacific region. The dollar advanced versus the yen as positive reports for the U.S. economy are due to be published tomorrow, according to analysts.
The appeal for the yen may decline further during the next few months as resilience in Asian economies may attract investors to inject capital in riskier assets, abandoning safer bets in Japan’s financial market, naturally affecting the yen’s rates specially versus commodity linked currencies.
EUR/JPY traded at 131.75 as of 13:35 GMT from a previous rate of 131.46. CAD/JPY traded at 87.46 from 87.04.

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