The Japanese Yen is currently benefiting from safe-haven flows as investors seek stability amid global economic uncertainty.

Concerns about various international markets are driving investors towards the Yen, which is traditionally seen as a safe store of value during times of economic instability. This trend reflects a flight to safety as investors become more risk-averse.

The Yen’s strength is also supported by Japan’s consistently large current account surplus, which indicates that the country is a net lender to the rest of the world. This position enhances the currency’s appeal as a stable investment option.

However, the Bank of Japan’s monetary policy also plays a crucial role. Its commitment to maintaining low-interest rates, even as other central banks are tightening monetary policy, can influence the Yen’s value. Despite this, safe-haven demand continues to be a significant factor driving the Yen’s performance.