Choosing to buy the Japanese yen as protection against a potential trade war is "pretty peculiar," one wealth manager told CNBC Monday.
The Japanese currency has been mostly on the rise against the U.S. dollar as investors look for a safe haven amid fears of a global trade war. On Monday morning, the yen was close to a 17-month high against the dollar following the U.S. decision last week to impose new tariffs on China worth $60 billion.
"Buying the yen because of a trade war in which Japan was going to be hit pretty badly, and Japan hasn't been exempted from the steel tariffs by the way, that seems to me pretty peculiar," Giles Keating, managing director at wealth manager Werthstein Institute, told CNBC.
Prior to imposing new tariffs on China for allegedly stealing intellectual property rights, the U.S. announced tariffs on steel and aluminum products. The EU managed to get a temporary exemption from the latter tariffs last week, but Japan didn't.