The Japanese yen gained at the start of Friday’s trading session and was trading sideways since then. The currency largely ignored positive domestic macroeconomic data, and the likely reason for the previous rally was investors’ desire for a safe haven.
Japan’s core Consumer Price Index rose 1.0% in February from a year ago, within expectations and a bit faster than in January (0.9%). That was the fastest increase since April 2015. Yet it looks like market participants were paying more attention to the looming trade wars, and the resulting aversion to risk was what drove the yen higher.
USD/JPY fell from 105.31 to 105.02 as of 11:12 GMT today, and its daily low of 104.64 was the lowest since November 2016. EUR/JPY bounced to trade near the opening level of 129.60 following the drop to 128.94 intraday — the lowest level since August 2017.
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