FXY's recent recovery is mainly driven by soft US economic outlook. The US trade war has weakened the US dollar, supporting the yen and FXY. The BOJ faces a balancing act: fighting inflation while avoiding recession that could stem from the US-Japan trade war -- putting on pause rate hikes in the near future.
Here, we highlight five safe-haven ETFs that investors should consider adding to their portfolios as trade fears continue to escalate.
Investors can seek safety in these ETFs as broad-based tariff tensions escalate.
The Japanese yen has been in great shape lately due to hawkish monetary policy and higher safe-haven demand.
The Bank of Japan (BOJ) increased its policy rate by 25 basis points to 0.5% on Jan. 24, 2025.
As the tech stocks crashed lately due to the apparent "AI fatigue", safe-haven ETFs may come to your rescue.
The Invesco CurrencyShares Japanese Yen Trust ETF provides exposure to the yen, which has been the worst performing G7 currency for several years. Recent changes in BoJ policies and currency interventions may signal a potential turnaround for the yen. USD/JPY has broken its trendline and a break back through 152 could signal a significant change in trend.
Japan's Ministry of Finance revealed that the country has conducted its first currency intervention since October 2022, aimed at stabilizing the yen following its decline to a 34-year low in April.