It's not, really. What happens is that Japanese investors own a boatload of foreign investments (stocks and bonds). When they get nervous, or when their profits on their domestic market start to shrink, they hedge their overseas investments in order to lock in profits there. That causes the yen to appreciate. read more
During risk-off episodes, the yen is a safe haven currency and on average appreciates against the U.S. dollar. We investigate the proximate causes of yen risk-off appreciations. We find that neither capital inflows nor expectations of the future monetary policy stance can explain the yen’s safe haven behavior. read more
During risk-off episodes, the yen is a safe haven currency and on average appreciate against the U.S. dollar. We investigate the proximate causes of yen risk-off appreciations. We find that neither capital inflows nor expectations of the future monetary policy stance can explain the yen’s safe haven behavior. read more