Safe haven currencies like the U.S. dollar and the yen were in bid on Thursday on renewed fears of a global banking crisis, after contagion from the implosion of U.S.-based Silicon Valley Bank had spread across the Atlantic to Swiss bank Credit Suisse.
The yen jumped about 0.5% in early Asia trade and last stood at 132.73 per dollar, extending Wednesday's 0.6% gain.
"Given the elevated uncertainties and concerns about broader financial contagion, the dollar, as well as the yen, will be the main beneficiaries because of safe haven demand." SVB's shutdown on Friday, followed two days later by the collapse of Signature Bank, forced U.S. President Joe Biden to rush out assurances the financial system was safe and promptedInvestors remain on tenterhooks as they await further clarity on how widespread the fallout could be, with rescue measures from authorities doing little to soothe heightened fears thus far.
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