Financial Times FT.com

Yen surges amid flight to quality

By Peter Garnham

Published: February 27 2007 11:24 | Last updated: February 27 2007 17:16

The yen and the Swiss franc were the big winners on Tuesday, with both currencies surging as global equities took a pounding.

Analysts said there were signs that rising risk aversion was prompting investors to unwind carry trades, in which long positions in high-yielding currencies are funded by selling low-yielding currencies such as the yen and the Swiss franc.

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