What's your view on the dollar against the havens?
The dollar's post-hike strength meets the yen's intervention risk and the franc's haven bid — three stories, two pairs, one question: where does the balance sit?
Post your read:
- which haven you think holds up better against the dollar
- how the Fed-BoJ gap and the SNB's path weigh in
- the levels that would change your mind
Background: safe-haven currencies and the DXY.
Background: Safe-haven currencies: why the yen and Swiss franc rise in a crisis
When markets panic, money flows into a few currencies seen as safe. Why the yen, franc and dollar play that role, and when it breaks down.
Why is the yen a safe-haven currency?
Japan holds large foreign assets that tend to be brought home in a crisis, and the yen is widely borrowed to fund carry trades. Both lead to yen buying when markets fall.
What is a risk-off move?
A shift away from risky assets such as stocks and higher-yielding currencies, towards perceived safe havens such as the yen, Swiss franc, dollar and gold.
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