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Yen Is Haven of Choice as Investors Brace for French Vote: Chart

Yen Is Haven of Choice as Investors Brace for French Vote: Chart

Yen Is Haven of Choice as Investors Brace for French Vote: Chart

(Bloomberg) -- The yen appears to be investors’ preferred hedge against euro declines before the first round of France’s presidential election on Sunday, judging by risk-reversal rates. The one-month measure for the euro against the yen fell this week to the lowest level since January 2009, while a similar measure for the common currency against the Swiss franc hasn’t gone beyond levels seen less than a year ago. One reason for elevated hedging may be Japanese investors seeking protection for their French bond holdings.

To contact the reporters on this story: Kristine Aquino in London at kaquino1@bloomberg.net, Vassilis Karamanis in Athens at vkaramanis1@bloomberg.net.

To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net.