The Japanese yen is still broadly performing like a safe-haven even though there have been some cracks in correlations, per HSBC.
Key quotes
“The clear divergence where USD/JPY moved higher as the S&P 500 Index continued to fall in the second half of March should come down to the USD, not the JPY.”
“There is a low likelihood of renewed sharp portfolio outflows, and medium-term and longer-term flows across both the financial and current accounts argue for the JPY to continue to perform well during periods of risk aversion.”
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