The Safe haven currencies and Commodities

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.

4.     The US Dollar: in recent months the U.S. Dollar strengthened amid the significant improvement of the US economy, which was confirmed by the U.S. Fed decision to reduce its bonds buying program in each meting by $10 billion. 


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