Business · Markets · 4 hrs ago
Yen Gains as US Tech Selloff Drives Demand for Safer Assets
The Japanese yen rose against the US dollar as investors sought safer assets during a selloff in US technology shares.
It gained as much as 0.6% to 157.54 on Thursday, outperforming other major currencies.
Concerns about AI investments added to the market volatility after a Democratic sweep in this week’s US midterms, while the Nasdaq 100 fell 5.5%.
CIBC and Nomura strategists said the yen could benefit if investors keep moving away from dollar-denominated assets.
CIBC expects the yen to reach 148 per dollar by the end of 2027, while Nomura said it remains positioned for the yen to strengthen against the dollar.
Further Bank of Japan rate rises could support the yen, especially if Japanese investors shift money from foreign bonds into local ones.
The outlook depends on whether the tech selloff and demand for safer assets continue.
The yen rose as a selloff in US technology shares prompted demand for safer assets.
It strengthened as much as 0.6% against the US dollar to 157.54 on Thursday, outperforming other Group of 10 currencies.
Strategists at CIBC and Nomura said they expect the yen to gain further.
The Nasdaq 100 fell 5.5% on Thursday, while short-dated US Treasury yields declined by more than 10 basis points.
- Who
- The Japanese yen strengthened against the US dollar. Strategists at CIBC and Nomura expect further gains.
- What
- The yen rose as investors sought safer assets amid a US technology-share selloff.
- When
- Thursday. The article was published on November 5, 2026.
- Where
- In foreign-exchange markets; the article does not state a specific location.
- Why
- A selloff in US technology shares prompted demand for safer assets, while concern about AI investments weighed on US stocks.
This story does not have two clearly opposing sides.
A Democratic sweep in the US midterms led to concern about AI investments and weighed on US stocks.
The yen strengthened as much as 0.6% against the US dollar to 157.54 as traders sought safer assets.
- Yen gain
- As much as 0.6% against the US dollar
- Yen exchange rate
- 157.54 per US dollar
- Nasdaq 100
- Fell 5.5% on Thursday
- CIBC forecast
- Sarah Ying expects the yen to reach 148 per US dollar by the end of 2027
- Short-dated US Treasury yields
- Declined more than 10 basis points on Thursday
What people are saying
If the AI trade continues to unwind, investors will be looking for somewhere to go
We suspect that demand for haven currencies would rise
consistent best FX trade
The yen is benefiting from the return of safe-haven demand amid equity volatility