The yen rose on Tuesday as traders sought safety in the low-risk currency on anxiety about sluggish global growth, further losses in the Chinese stock market and the breakdown in relations between Iran and Saudi Arabia.
The Japanese currency, traditionally sought at times of risk aversion, climbed to its strongest level since April against the euro and hovered at its highest since October versus the dollar. It also rose to the loftiest against the sterling since October 2014.
"It's a risk-aversion trade. It's a persistent play in the yen," said Mazen Issa, senior currency strategist at TD Securities in New York.
The yen briefly retreated from Monday's highs after China injected an estimated $20 billion into money markets in a stability effort after Monday's alarming 7-percent drop in stocks.