According to Jinshi Data, Charu Chanana, head of foreign exchange strategy at Saxo Bank, said in a report that the yen's safe-haven appeal has boosted the yen. If the Federal Reserve's sharp rate cuts lead to the unwinding of carry trades, the yen may rise further.

The yen outperformed other currencies during Tuesday's sell-off, showing its safe-haven appeal. The yen remains a key asset for investors seeking stability as they grapple with uncertain economic conditions and potential market shocks.