Japanese Yen Rises as US Tech Selloff Triggers Safe-Haven Demand

The Japanese yen strengthened against the US dollar on Friday following a sharp selloff in US technology shares on Wall Street. The currency rose 0.2% to 157.34 per dollar in early Asian trading, continuing a trend from Thursday when it gained as much as 0.6%.

This shift toward safe-haven assets was triggered by investor concerns regarding the future of artificial intelligence investment. These anxieties followed a Democratic sweep in the US midterm elections, leading investors to move capital away from volatile tech stocks.

Market strategists expect the trend of investors seeking safety to provide continued support for the yen. During this period of volatility, the yen outperformed all Group-of-10 peers.