Safe Haven Currency

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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.
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References in periodicals archive ?
The dollar weakened as investors sold safe haven currencies due to growing optimism about US-China trade talks.
FX Update: Dollar weakness alongside yen and Swiss franc outperformance have remained the dominant theme in thin year-end forex markets, with the safe haven currencies ascending despite concurrent gains in most global stock and commodity markets.
The Financial Stability Coordination Council (FSCC) recognizes the increased volatility in macro-financial markets where interest rates have generally become more volatile, investors have rebalanced towards safe haven currencies, and threats to global economic growth have increased.
Espenilla, who is also chairman of FSCC, said it recognizes the increased volatility in macro-financial markets where interest rates have generally become more volatile, investors have rebalanced toward safe haven currencies, and threats to global economic growth have increased.
It said it "recognizes the increased volatility in macro-financial markets where interest rates have generally become more volatile, investors have rebalanced towards safe haven currencies, and threats to global economic growth have increased."
He further noted that elsewhere, the Germany-Italy 10-year yield spread is crossing above 200 basis points, a deterioration that threatens a weaker euro versus the most liquid safe haven currencies like USD and EUR, with CHF potential perhaps frustrated by the Swiss National Bank.
The ringgit extended yesterday's losses to close weaker against the US dollar today on continued selling as more investors turned towards safe haven currencies, a dealer said.
Safe haven currencies, including the US Dollar, Swiss Franc and Singapore Dollar, remain elevated based on 10-year averages, while most EM currencies appear undervalued by the same metric.
The events of last week saw the precious metal sold off, whilst other safe haven currencies like the JPY and an unexpected EUR are in demand.
The heightened uncertainty has triggered risk aversion in the market early in the week, supporting traditional safe haven currencies such as the Swiss franc and the Japanese Yen.
While there is likely to be initial turbulence in global financial markets and a flight to safe haven currencies and assets, notably to the US dollar and US Treasuries, the contagion effects to Asia may be limited if the rest of the Eurozone is successfully ring-fenced from the Greek exit," said Rajiv Biswas, Asia-Pacific Chief Economist, IHS Global Insight.
stocks and falls in commodity prices, fueling demand for the yen and the dollar, both of which are deemed as safe haven currencies.