ING analyst Francesco Pesole stated in a report that the Japanese yen, as a safe-haven currency, may outperform the US dollar as the risk of a US government shutdown increases. During a potential government shutdown, USD/JPY depreciation would "likely remain the most favored trade." According to ING's model, during the 2018-19 government shutdown, the USD/JPY exchange rate declined by 1.5%. The yen could also benefit from further declines in oil prices before year-end.
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