Japan is the world’s biggest creditor nation and there is an assumption Japanese investors may repatriate their foreign holdings in times of heightened global uncertainty.
Some market participants say the paring of bearish bets against the Japanese yen has probably added to its gains this week.
“Although we’re seeing some flight to safe havens, it seems that it’s more of a risk consolidation. Profit-taking as opposed to a deeper retreat,” said Stephen Innes, head of trading in Asia-Pacific for OANDA in Singapore
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