Peter Kinsella, senior currency strategist at Commerzbank, says the yen will come under pressure as the Australian central bank and Bank of England begin to hike interest rates.
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The Japanese yen's safe-haven status may be in jeopardy as rising import costs continue to eat into the country's current account, analysts say.
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Phyllis Papadavid, senior global FX strategist at BNP Paribas CIB, says the Bank of Japan will look to push the yen lower to help the country's economy, making long dollar/yen an attractive trade.
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The safe-haven yen was on the defensive and the euro stood firm in early trade on Tuesday as anxiety over the Ukraine crisis ebbed for the time being.
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