Safe Haven Currency

Safe Haven Currency

A currency that investors trust more than others and which they therefore buy in times of uncertainty. Safe haven currencies are considered low risk because their issuing governments are stable and their economies tend to be strong, among other reasons. Examples of safe haven currencies include the U.S. dollar and the British pound.
References in periodicals archive ?
Zurich: Switzerland's central bank on Thursday announced it was introducing negative interest rates, in a bid to stop the Swiss franc -- a safe haven currency -- from gaining further value.
The Japanese yen continues to trade as a safe haven currency again on the back of all the emerging market currencies woes.
The dollar remained weak in Tokyo trading hours, with some traders fleeing to buy the yen, deemed a safe haven currency.
THE MOST OVERVALUED major currency in the world is the Swiss franc, the safe haven currency that attracted offshore funds on an epic scale during successive euro crises in 2010-11.
The latest move by the SNB has converted the Swiss franc's status from safe haven currency to carry currency - with Swiss interest rates at zero per cent, essentially Swiss loans could be plowed into German bunds for a yield of just under two per cent.
53 at one point, after the greenback was seen as a safe haven currency despite the US's woes.
However, with lending rates already close to zero, the Swiss central bank has been unable to cut rates in order to cool interest in the safe haven currency.
The Swiss Franc has become a safe haven currency for investors in recent years, and European clients who take advantage of the recent launch of OANDA Europe will appreciate the flexibility of accessing additional Swiss Franc pairs.
Heightened risk aversion and escalating concerns over the euro zone debt problems further support the safe haven currency.
The Swiss franc was in demand in 2010 as a safe haven currency and with the euro crisis set to deepen again in the first half 2011, this tendency is likely to continue, said Kubli.
The franc has lost some of its clout as a funding and safe haven currency over the months; but when the bias behind sentiment increases, the Swissie's correlation tightens.
Daniel Scheibler talks about last year's SMI performance and speculates about who will be hot, and who not, in 2002, and the role of the Swiss franc as a safe haven currency in the new year.