The Japanese yen is still going through the roof.
As of 8:07 a.m. ET, the yen is up by 11.2% at 140.30 against the pound.
The currency also surged to a high of 99.94 per dollar as of 11:45 p.m. ET (4:45 a.m. BST). It’s fallen back slightly as is trading around 102.4 per dollar as of 8:07 a.m.
The yen is considered to be a safe-haven currency that investors dive into when things get rocky. And as things get more and more topsy-turvey in the aftermath of the UK voting to leave the EU, investors seem to be pulling into the currency.
Still, not everyone thinks the yen will stay this strong for the long term. Here’s what Capital Economics’ chief Asia economist Mark Williams and senior Japan economist Marcel Thieliant wrote in an emailed note to clients:
“The UK’s vote to leave the EU has pushed the yen to levels last seen when Quantitative and Qualitative Easing was first launched, while the Nikkei has slumped by 8%. These moves increase the chances of direct intervention by Japanese policymakers to weaken the currency and also that the Bank of Japan steps up its policy support next month. As such, we do not expect the yen to remain this strong for long.”
Relatedly, Nikkei just dipped by 8% around 11:49 p.m. ET (4:49 a.m. BST) to 14,911.19.