Yen Recovers Amid Growing Concerns Over Banking Crisis Contagion

The Japanese yen recovered from sharp losses of 0.6% to stabilize against the dollar after a significant drop in the yield on the US ten-year bonds as trading in Europe was about to begin, following an increase of 12 basis points earlier. Strategic analyst on Japan, Takahiro Sekido, stated, "The driving force in the market is risk aversion." He added, "I am not too pessimistic, but we still need to wait to see how far we will witness the contagion of risks from Europe, at least during this week. I expect the yen to remain strong."