The Japanese Yen is considered a safe-haven currency in global markets
The retrieved literature consistently supports the status of the Japanese Yen as a safe-haven currency, noting that it tends to appreciate during periods of global economic uncertainty and financial market turmoil.
Multiple empirical studies (e.g., Papers 2, 3, 6, and 11) explicitly identify the Japanese yen as a safe-haven currency that appreciates during global crises and periods of heightened economic policy uncertainty due to factors such as carry-trade unwinding and structural economic conditions. No papers refute this claim.
Yosuke Kido. The transmission of US economic policy uncertainty shocks to Asian and global financial markets. 2018. https://doi.org/10.1016/J.NAJEF.2018.04.008
Paper 2 finds that the Japanese yen appreciates in response to US economic policy uncertainty, reflecting its safe-haven status.
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Kenneth Rogoff, Takeshi Tashiro. Japan's Exorbitant Privilege. 2015. https://doi.org/10.1016/J.JJIE.2014.11.003
Paper 3 demonstrates that the yen has enjoyed a safe-haven effect in recent periods alongside its exorbitant privilege.
Zheng-Zheng Lee, Chi Su, Ran Tao. No longer a safe haven currency? A fresh evidence of Japanese yen under uncertainty. 2024. https://doi.org/10.2298/pan190329021l
Paper 6 confirms that the yen tends to appreciate during crisis periods as economic policy uncertainty increases.
M. Yoshimori. Asymetrix Currency Turbulence with US Dollar/Japanese Yen Carry Trade: Insights into Central Bank Interventions and Exchange-Rate Dynamics. 2025. https://doi.org/10.61093/fmir.9(1).74-98.2025
Paper 11 notes that global market volatility reinforces the yen's status as a safe-haven currency.
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