TOKYO/LONDON—Japan’s yen rallied on Monday as investors sought out safe assets after UBS’ cut-price takeover of its beleaguered rival Credit Suisse failed to quell market nerves.
Under the deal, holders of $17 billion of Credit Suisse additional tier-1 (AT1) bonds will be wiped out. That angered some of the holders of the debt who thought they would be better protected than shareholders and unnerved investors in other banks’ AT1 bonds.
The yen—long seen as a safe currency to hold at times of stress—rallied as a drop in Asian bank stocks overnight spread to Europe on Monday.
The dollar slid to its lowest since Feb. 10 at 130.55 yen, and was last down 0.75 percent at 130.83….