Safe-Haven Currencies
Safe haven currencies, in the context of the foreign exchange (forex) market, are currencies that tend to attract increased demand from investors during times of heightened market uncertainty, geopolitical tensions, or economic instability. These currencies are perceived as relatively stable and less risky compared to other currencies, making them sought after by investors as a way to preserve capital and reduce exposure to risk. Common safe haven currencies include: US Dollar (USD): The US Dollar is often considered the ultimate safe haven currency due to its status as the world’s primary reserve currency and the stability of the US economy. Swiss Franc (CHF): Switzerland is known for its stable economy and strong financial system. The Swiss franc is considered a safe haven due to Switzerland’s reputation for political neutrality and economic stability. Japanese Yen (JPY): The Japanese yen is often viewed as a safe haven due to Japan’s large foreign exchange reserves and its status as a creditor nation.
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