Stephen Jen Says Short Dollar Versus Yen If Iran War Intensifies

If conflict in the Middle East intensifies, investors should short the dollar against the yen, says Stephen Jen, chief executive of London-based asset manager Eurizon SLJ Capital.

The Japanese currency could attract safe haven flows as global assets sell off, prompting domestic investors to repatriate funds. That could reverse the current trend, where the yen has been weakening because Japan’s status as a net energy importer means a surge in oil prices from the Iran war has stoked inflation concerns.