In global financial markets, there was increased demand for the yen as a safe haven amid heightened uncertainty about future developments in overseas economies, especially the U.S. economy.
As a result, the yen appreciated to a level close to 80 yen against the U.S. dollar, leading to increased concerns about downside risks to the  2  For details, see remarks by Chairman Bernanke made at “Mortgage Foreclosures and the Future of Housing Finance,” a Joint Conference Sponsored by the Federal Reserve System and the Federal Deposit Insurance Corporation, at Arlington, Virginia, on October 25, 2010.