The gained ground on Monday, drawing strength from rising global political uncertainty as investors turned to traditional safe-haven assets. With risk sentiment weakening across markets, the yen’s appeal as a stable currency was once again reaffirmed.
Investors Shift to Safety Amid Global Tensions
The Japanese yen edged higher against the and other major currencies, with USD/JPY pulling back from recent highs. Political instability in various regions—ranging from leadership transitions in Asia to escalating electoral uncertainty in Europe—has left investors cautious.
This shift in sentiment has driven a move toward safe-haven assets such as the yen, , and U.S. Treasuries. Among them, the yen remains a preferred hedge in times of geopolitical unease due to Japan’s strong current account surplus and low levels of external debt. Investing.com
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