The Japanese yen extended its gains Monday as investors sought refuge in safe-haven assets amid ongoing concerns about the global economic outlook. Heightened risk aversion fueled demand for the yen, pushing it higher against major currencies.

Factors Driving Yen Strength

• Global Economic Uncertainty: Concerns about a potential recession in major economies are prompting investors to reduce their exposure to riskier assets.
• Flight to Safety: The yen is traditionally seen as a safe-haven currency, attracting investors during times of market turmoil.
• Carry Trade Unwinding: Some investors are unwinding carry trades, which involve borrowing in low-yielding currencies like the yen to invest in higher-yielding assets.

Market Impact

The yen’s strength has had a notable impact on currency markets. The US dollar has weakened against the yen, and other currencies have also experienced pressure. Analysts are closely monitoring the situation, expecting continued volatility in the near term.