Market Sentiment Sours, Restoring Demand for Safety of Yen

The Japanese yen gained on its rivals during the current trading session as the market sentiment soured, making investors shun riskier assets and prefer safer ones.

Market participants were a bit nervous ahead of the upcoming Group of Twenty meeting. In particular, they were concerned how the Trump administration will handle its coming out.

The yen, being traditionally considered a safe currency, profited from such concerns. The Australian dollar, a risk-sensitive currency, was one of the biggest losers against the yen, though Australia’s macroeconomic data also played part in the Aussie’s decline.

USD/JPY slid from 114.15 to 113.57 as of 12:42 GMT today. AUD/JPY dropped from 88.00 to 87.54.

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