The yen depreciated around 1 percent in the last week as risk appetite in the global markets led to lower demand for the currency. Over the last week, mixed economic indicators from Japan also led to weakness in the currency.
The currency touched a weekly low of 98.20 on Tuesday and closed at 97.52 on Friday. Core Machinery Orders declined sharply in June by 2.5 percent as against a rise of 10.5 percent in May.
From the intra-day perspective, we expect Yen to appreciate on account of weak global market sentiments which will lead to rise in demand for the low yielding currency.
Courtesy: Angel Commodities