The yen rose sharply and high-yielding currencies came under pressure yesterday as rumours of a military incident involving Iran and the US rattled investor confidence. Analysts said the resulting rise in risk aversion had led investors to exit carry trades. The likely beneficiaries of rising tension in the region would be safe-haven currencies such as the Swiss franc, oil- dependent currencies such as the Canadian dollar and Norwegian krone and possibly the yen, if the carry trade came under further pressure, said David Woo of Barclays Capital Markets.
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