The Japanese yen rose broadly Tuesday as investors sought refuge in the perceived safety of the currency amid renewed concerns about the global financial system. Heightened risk aversion, triggered by ongoing worries about the credit market and the broader economic outlook, propelled the yen higher against the U.S. dollar, the euro, and other major currencies.

Analysts noted that the yen’s appreciation reflected a flight to safety, a common phenomenon during periods of market uncertainty. The yen is often seen as a safe haven due to Japan’s large current account surplus and its history of low inflation.

The dollar fell to a session low of 119.22 yen, while the euro weakened to 168.45 yen. The yen also gained ground against the British pound and the Swiss franc.

Market participants are closely watching developments in the credit markets for further signs of instability. Any escalation of the credit crisis could further boost demand for the yen and other safe-haven assets.

The focus now shifts to upcoming economic data releases, including manufacturing and employment figures, which could provide further clues about the health of the global economy.