Yen jumps as oil, AI and France worries rattle markets

On Thursday, the Japanese yen experienced its strongest daily gain in nearly a month, as investors turned to the currency for safety amid unsettled equity markets, soaring oil prices, and concerns over the future returns from artificial intelligence. The US dollar also rose against the euro during this market turbulence. Worries over potential social unrest in France and France's deteriorating fiscal outlook proved more concerning than doubts about the AI trade, which contributed to a decline in US stocks.

Chris Scicluna, head of economic research at Daiwa Capital Markets, noted that there is a growing sense of risk aversion in the market, with investors apprehensive about various factors. Brent crude oil prices surged to their highest level since May due to ongoing Houthi attacks in Saudi Arabia and fears of increased conflict in the Middle East, further disrupting oil supplies from the region.

The Japanese yen strengthened by 0.51 percent to 157.33 per dollar, while the Swiss franc remained relatively stable at 0.824 per dollar. The dollar index, which gauges the greenback's performance against a basket of currencies including the yen and the euro, increased by 0.14 percent to 101.82, with the euro falling by 0.3 percent to $1.1198.