Safe Haven Currency is a Currency where investors and fund managers seek a Safe Haven for their money in times of political turmoil.
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1. The United States is the largest player in the world bond market.
The U.S. bond market is the only bond market with enough liquidity to soak up their money, and investors in the U.S. bond market can only use dollars to buy.
Since all commodities and precious metals are priced in dollars, the dollar became the global and medium of exchange.
2. The yen Japan has the world’s best current account record.
For example, within the scope of the company, the profits made by the company get better and better every year.
Japan does not owe much to the world so it is a self-sufficient economy.
3. The Swiss Franc The Swiss franc is still seen as a gold-backed currency, but this is no longer the case.
Feelings play a bigger role, so the Swiss franc is still considered a safe haven currency.
Keeping an eye on U.S. retail sales data and Fed minutes, Bank of America is forecasting extended gains in Japan and Japan.
