Weak Japanese yen’s safe haven status at risk, further depreciation might hit roadblocks from Tokyo

THE yen’s rapid drop to a 2-decade low against the greenback has drawn concerns as to whether the Japanese currency can continue to be regarded as a safe haven asset.

While some analysts expect the yen will lose that status, others are bullish about its performance in the medium to longer term.

The Japanese currency tumbled to a 24-year low on Monday (Jun 13) to 135 against the US dollar. Notably, the yen has depreciated 14.3 per cent year to date in 2022, more than the 10.3 per cent decline for the whole of 2021.