Yen Is Haven of Choice as Investors Brace for French Vote: Chart

The yen appears to be investors’ preferred hedge against euro declines before the first round of France’s presidential election on Sunday, judging by risk-reversal rates. The one-month measure for the euro against the yen fell this week to the lowest level since January 2009, while a similar measure for the common currency against the Swiss franc hasn’t gone beyond levels seen less than a year ago. One reason for elevated hedging may be Japanese investors seeking protection for their French bond holdings.

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