Yen surges amid end-of-year investor nerves

London

THE yen gained sharply against the US dollar and euro on Tuesday as investors sought the traditional safety of the Japanese currency amid end-of-year nerves over looming economic risks.

The risk of Greece dropping out of the eurozone returned to haunt the single currency after Greek lawmakers failed to elect a president on Monday, triggering a general election next month, while broader concerns over slowing global growth and deflation are also troubling investors as they look to 2015.

Worries over global demand have helped cause a collapse in oil prices, which hit a fresh 5½-year trough below US$57 a barrel on Tuesday, dragging down stock markets and the dollar with…