Early on Monday, the Japanese yen is trading somewhat steady against the US dollar as its safe haven appeal shines through over rising worries about the coronavirus outbreak’s impact on economies beyond China. At the time of writing, USD/JPY is trading around 111.59.

After a slight improvement over the previous week, the sentiment soured all over again after countries like South Korea, Iran and Italy reported an increase in the number of infected cases and the death toll due to the virus. South Korea has already declared the highest alert as it tries to reign in the spread of the virus while other nations are also taking necessary measures, while the WHO and other authorities are unable to directly link the international outbreak to the epidemic in China.

The Japanese yen received some support as Asian stock markets dived lower even as safe haven instruments like gold and the US dollar received some bids. The gains in the yen as a safe haven remain limited, however, as markets worry about Japan’s possible risk exposure to the coronavirus due to its geographical proximity and close trading relationship with China.