Opinion
How long before the yen is again a safe-haven bet?
With a shrinking population, even a stagnant GDP means that per-capita incomes are still growing in Japan. If inflation remains positive and interest rates continue to rise, the yen is likely to eventually strengthen.
Shiro ArmstrongTrade expertUntil recently, the Japanese yen was a safe haven currency. When shocks like Brexit hit the global market, Japanese investors – the symbolic Mrs Watanabe retail investors – brought their savings back to Japan.
When there was global uncertainty, the yen strengthened, making Japanese exports less competitive. That was despite three decades of low economic growth and structural headwinds like a shrinking and ageing population.
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