Hi- Anybody knows why Japanese Yen is a safe haven for currencies? Arent their interest rates at 0 and their economy experiencing deflation- won't the currency experience depreciation in the long run?

Hi there!

Nope! In fact, during times of deflation it is better to hold cash as while inflation erodes the value of cash, deflation increases the value of cash as dollar is worth more tomorrow than today because it would buy more if prices drop.

Moreover, Japanese Yen are known to be safe haven currencies due to historical evidences, which show that the Yen tends to appreciate during times of crisis. Even during the 2011 Earthquake that resulted in the Fukushima Nuclear Disaster, the currency somehow managed to rise.

While Japanese Yen is a safe haven, Jap Bonds are not exactly considered as good for investors as most of them have zero/negative yields. Essentially, that means that you will almost get zero/negative returns from investing in Jap Bonds. In comparison, you might want to invest in Singapore Saving Bonds instead, which yields ~2.20%.

However, some investors may still want to purchase them, you may want to refer to this article to find out more: https://www.economist.com/the-economist-explain...