The Safe haven
currencies and Commodities
In times of crises or economic instability, Investors demand for safe haven currencies and Gold increase significantly. The most important safe haven currencies are the Japanese Yen (JPY), the Swiss Franc (CHF), the US Dollar (USD), these currencies are more stable and have less volatility compared to the other currencies. Gold is used by investors to counter inflation and Geopolitical turmoil.
1. The
Japanese Yen: the Japanese yen is considered as the world top safe haven currency
because the Japanese economy is more stable than the other economies, and the
Bank of Japan always make an intervention to depreciate the Yen if it is higher
then the other currencies.
2. The
Swiss Franc:
many investors are turning to the Swiss Franc as a refugee since the Euro zone
debt crisis. Also has gained value on worries about the escalating tensions in Ukraine.
3. The
Gold:
In case of political or economic insatiability the investors turns to buy the
Gold as a safe haven asset or an alternative investment. For example, the
recent geopolitical tension between Russia
and Ukraine
has increased demand for Gold by many traders whom turned away from investing
in riskier assets such as equity markets.
