国际英语新闻：News Analysis: Yen to remain strong amid dismal expectations for world economy

BEIJING, Sept. 1 (Xinhua) -- Analysts predict the Japanese yen will stay high for some time, as worries about the prospect of a weak global economic recovery prompt more buying of the yen, which is perceived safer than other major currencies.

The Japanese yen has been steadily rising against the U. S. dollar in the past four months, reaching a 15-year-high of 83.60 yen per dollar last week.

YEN BECOMES NEW "SAFE HAVEN"

The global economic recovery started to weaken in the second quarter, especially in the United States, where the risk of slowing growth has loomed. This dismal prospect has produced a sentiment of risk-avoidance in financial markets, leading to a rise in gold prices, falling oil prices and a weak stock market.

Against this background, the Japanese yen and Swiss franc have become the "safe havens" of investors. In Tokyo on Monday morning, the yen was traded at the high level of 84 yen against the dollar and the currency is expected to rise further.

During August, the yen has risen against the other 16 major currencies, with its value increasing 16 percent so far this year, the biggest increase among currencies of developed economies.

The Swiss franc has also risen strongly, with its rate against the euro approaching historic highs last week. The currency also rose 3 percent against the U.S. dollar.

The rise in the yen and the franc is in contrast to the dollar's strength during the depth of the financial crisis, when almost all economies were struggling. Then, the U.S. dollar was the "safe haven". Analysts see this turnaround as a sign the world economy is much stronger than during the crisis, although the recovery has destablized.