The yen’s status as a haven in times of global stress faces growing skepticism, threatening to exacerbate a selloff that sent the currency to an eight-month low this week.
For decades, investors have turned to the yen during market shocks, from financial crises to geopolitical blowups. The logic was simple: Japan’s huge current-account surplus, stable political system and deep domestic investor base made it a reliable refuge when risk assets tumbled.
But that instinct is now under strain, undermined by the Japanese currency’s increasingly inconsistent behavior as a hedge and a move toward gold as part of a trade that shuns major currencies.
Continue Reading on The Japan Times
This preview shows approximately 15% of the article. Read the full story on the publisher's website to support quality journalism.