[Risk aversion drives the yen to outperform major currencies; analysts warn against over-interpretation] October 22: As global stock markets suffered a sell-off and risk aversion increased, the yen outperformed all major currencies on Thursday. Traders and strategists pointed out that domestic financial flows in Japan also provided support for the yen. The yen rose 0.9% against the U.S. dollar to 156.69 yen per U.S. dollar, its strongest level since late September. The yen once rose 1.1% against the euro, close to its highest level in the past year; it also rose about 0.5% against the Swiss franc. Traders said long-term institutional investors bought the yen as major stock indexes in Asia and Europe fell and U.S. stock futures edged lower. A new round of disappointing results from technology and artificial intelligence-related companies dampened market sentiment, while rising tensions in the Middle East drove up oil prices, further dampening risk appetite. Strategists pointed out that demand for Japanese government bonds has increased and there are signs of buying by domestic funds in Japan. Some strategists say these factors may be helping the yen outperform other G-10 currencies, although more evidence is needed to determine whether such flows are becoming a sustained source of support for the yen.