Safe-currencies are currencies that investors and traders tend to consider stable enough to hold their value against other currencies in periods of economic uncertainty, inflation and financial crises.
In general, safe-haven currencies belong to countries that have a stable economy, so as not to allow the currency to move excessively on the market.
In times of crisis, investors may seek to diversify their foreign currency investments to reduce their portfolio’s exposure to the depreciation of the major currency.
The major safe-haven currencies on the Forex market are:
- yen
- US dollar
- Singapore dollar
- Norwegian krone
