Safe Haven Currencies
a.k.a. Safe havens, Safe-haven currency
Currencies investors flock to in times of fear, mainly the US dollar, Japanese yen and Swiss franc.
In plain English
Currencies investors flock to in times of fear, mainly the US dollar, Japanese yen and Swiss franc.
Safe haven currencies are where money hides when the market gets scary. The usual suspects are the US dollar, the Japanese yen and the Swiss franc, with gold playing a similar role.
Why them? Deep markets, stable institutions, and in Japan's and Switzerland's case large holdings of foreign assets that get brought home in a crisis. When stocks crash, these currencies often rise even if the bad news comes from their own country.
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