Mizuho: Safe-haven demand is driving the yen's strength, and future gains will depend on Japanese fiscal and monetary factors

(1) Kyugo Hasegawa of Mizuho Bank stated in a report that the recent appreciation of the yen may have been driven by safe-haven demand. (2) The economist noted that fiscal concerns in France have significantly pushed up the Swiss franc, sparking market caution that the Swiss National Bank may take steps to limit further appreciation of the franc. (3) Hasegawa said that this caution regarding potential measures by the Swiss National Bank may have prompted safe-haven funds to shift to the yen. (4) However, fiscal and monetary factors in Japan are critical for the yen to appreciate further. (5) USD/JPY is quoted at 156.87, and EUR/JPY at 175.88.