Yen gains in flight to safety amid Yemen crisis

The yen Thursday gained against the dollar and the euro as the Yemen crisis pushed investors into the Japanese currency, traditionally seen as a safe haven.

Oil prices rose sharply as a Saudi-led coalition bombed Shiite Huthi rebels in support of Yemen's president, who fled his presidential complex Wednesday after it was attacked by a warplane.

Iran condemned the Saudi-led action, which has exacerbated longstanding Saudi-Iranian tensions. Saudi Arabia ramped up security along its borders and across the kingdom, including at oil facilities.

"We see a lot of volatility across foreign exchange markets right now, which is basically risk-aversion due to the Middle East tensions," said Kathy Lien, managing director of BK Asset Management.

"The main currency they're buying today is the yen."

Omer Esiner, chief market analyst at Commonwealth Foreign Exchange, said the yen is "often seen as a traditional safe harbor during periods of elevated financial and geopolitical uncertainty."

The Swiss franc, which is also seen as a safe harbor, rose against the euro but fell against the dollar.