Investors seeking protection against an uncertain U.S. election could park their money in the Japanese yen, an analyst from Goldman Sachs said on Tuesday.
Markets have increasingly warmed up to a “blue wave” in the U.S. elections this week. That’s an outcome where Joe Biden defeats Donald Trump in the presidential race, and Democrats win a majority in both chambers of Congress.
But some investors are concerned that the election result may not be what’s expected, and the outcome of the presidential race could be contested if there’s no clear winner – developments that would cause greater volatility in markets.
“We think that the Japanese yen probably will continue to be the preferred expression to hedge more