Japanese Yen: Safe-haven status questioned – Commerzbank

Commerzbank’s Michael Pfister and Volkmar Baur highlight that the Japanese Yen is struggling as a safe haven despite risk-off conditions. Rising Japanese debt concerns and the Bank of Japan’s (BoJ) rate hikes are seen eroding its traditional crisis appeal.

Debt and inflation reshape yen outlook

"But the yen is also gradually losing one of the characteristics of a safe-haven currency."

"With the BoJ’s interest rate hikes, this scope in Japan is continuing to increase."

"There are growing signs that the Bank of Japan should seriously consider raising the overnight call rate sooner rather than later."