For all the weakness in the yen this year, history shows that Japan’s currency is still in the running to be a surprise haven for investors seeking shelter from the U.S. presidential election.
Japan’s currency has beaten the greenback, Swiss franc, gold, Treasuries and euro — among the most popular safe assets — ahead of past elections, data shows. In the run-up to the Nov. 5 vote, the yen is again the top performer during periods of extreme market stress, according to an analysis of moves in haven assets and implied volatility of U.S. stocks.
The propensity of traders to turn to the yen when markets fluctuate wildly comes despite its status as the worst performing Group-of-10 currency this year.
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