Tensions in Iraq Increase Demand for Yen as Safe Haven

The Japanese yen advanced today as concerns about escalating tensions and the threat of a war in Iraq increased demand for safer assets among investors. The yen, being one of such assets, profited as a result.
Islamist fighters captured a Northern area of Iraq, including Mosul — the second biggest city of the country. The government military forces were unable to deal with the threat, and there are rumors that the United States will become involved. As it often happens, the Japanese currency shined in its role as a safe haven during the time of geopolitical turmoil.
USD/JPY went down from 102.06 to 101.89, reaching the low of 101.72 intraday, and EUR/JPY fell from 138.20 to 137.90 as of 10:31 GMT today.

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