Yen Maintained Safe Haven Status

The yen maintained its safe haven status on Tuesday and was able to strengthen against major currencies, despite the Chinese government has injected stimulus to restore investor confidence. Iran also has submitted a letter of "regret" to the United Nations (UN) related to attack Saudi Arabia embassy in Tehran that makes the Middle East kingdom broke diplomatic relations between the two countries. Global stock indices remained weak, despite a moderate decline compared slump inclined on Monday.

The weakening of the Japanese Nikkei index also advantageous Yen. Nikkei index of the second session stressed more than 1% following the movement of global stock markets still doubt the impact of the stimulus on People's Bank of China (PBoC).

Euro Inflation reported lower than expected to add the factors supporting the strengthening yen. Pressure on the euro in trading against the yen and the US dollar is increasing when the Eurostat preliminary calculations indicate the level of the Consumer Price Index (CPI) in Block-19 countries still drove up 0.2% in December from a year earlier. Before the data that released, economists assess the level of annual inflation in the Euro zone capable rose 0.3% at the end of last year. Monexnews