Yen Surges on Concern Over U.K. Political Turmoil, Italian Banks
- BNP’s European political risk index is at highest since 2011
- Yen rises as drop in stocks drives investors to haven assets
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The yen rallied, approaching its strongest level in 2 1/2 years, as investors focused on the political risks in the U.K. that are spreading beyond its borders as well as fresh concerns about the health of Italy’s banks.
Japan’s currency rose against all 16 of its major peers as Asian and European stocks fell, stoking demand for haven assets. Britain’s ruling Conservative Party on Tuesday started the process of selecting its next leader, who will also be the new prime minister and the person who will manage the nation’s withdrawal from the European Union following its June 23 referendum.