http://www.forexconspiracyreport.com/why-is-the-us-dollar-a-safe-haven-currency/ Why Is the US Dollar a Safe Haven Currency? In times of economic distress and especially in times of outright financial panic, investors look to safe havens for their money. The safe haven may be a type of investment, holding cash or buying gold. When the investor chooses to hold cash the question is which currency? A safe haven currency such as the Swiss franc, Japanese yen or US dollar is commonly the choice of international investors who distrust their own nation’s currency. In this regard is there an exact definition of a safe haven currency and why is the US dollar a safe haven currency? Safe Haven Currency The Forex Dictionary defines and explains safe haven currency. A safe haven currency is a currency that investors and traders believe is stable enough to keep its value compared to other currencies in times of economic uncertainty, inflation and other forms of crisis. Generally, safe haven currencies are from countries that have very stable economies, so the currency does not change much in value. In times of crisis, wealthy investors may seek to diversify their cash holdings away from their home county’s currency to reduce the risk of losing wealth through depreciation in the currency. By storing their wealth in safe haven currencies, an investor can cut down the risk of any single country seeing its currency sharply revalued. At the same time, traders try to read the moves in to and out of safe haven currencies in order to take up positions that profit from the buying and selling pressures these currency moves create. Although the label of safe haven doesn’t always apply, the U.S. dollar (USD), Japanese yen (JPY) and Swiss franc (CHF) are often considered to be safe haven currencies. At the current time does the USD fit the definition of a safe haven currency?

1. By www.ForexConspiracyReport.com

2. In times of economic distress and
especially in times of outright
financial panic, investors look to
safe havens for their money.

3. The safe haven may be a type of
investment, holding cash or
buying gold.

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5. When the investor chooses to hold
cash the question is which
currency?

6. A safe haven currency such as the
Swiss franc, Japanese yen or US
dollar is commonly the choice of
international investors who
distrust their own nation’s
currency.

7. In this regard is there an exact
definition of a safe haven currency
and why is the US dollar a safe
haven currency?

8. Safe Haven Currency

9. The Forex Dictionary defines and
explains safe haven currency.

10. A safe haven currency is a
currency that investors and
traders believe is stable enough to
keep its value compared to other
currencies in times of economic
uncertainty, inflation and other
forms of crisis.

11. Generally, safe haven currencies
are from countries that have very
stable economies, so the currency
does not change much in value.

12. In times of crisis, wealthy
investors may seek to diversify
their cash holdings away from
their home county’s currency to
reduce the risk of losing wealth
through depreciation in the
currency.

13. By storing their wealth in safe
haven currencies, an investor can
cut down the risk of any single
country seeing its currency
sharply revalued.

14. At the same time, traders try to
read the moves in to and out of
safe haven currencies in order to
take up positions that profit from
the buying and selling pressures
these currency moves create.

15. Although the label of safe haven
doesn’t always apply, the U.S.
dollar (USD), Japanese yen (JPY)
and Swiss franc (CHF) are often
considered to be safe haven
currencies.

16. At the current time does the USD
fit the definition of a safe haven
currency?

17. Why Is the US Dollar a Safe
Haven Currency?

18. There are times when financial
and economic chaos are spread
worldwide and the safe haven
currencies are simply those who
are in the least trouble.

19. That may well be the issue today.
Japan is in and out of recession.

20. The EU is flirting with deflation.
China is seeing the end of its
miraculous economic rise and the
USA is slowly but surely
recovering from the Great
Recession.

21. Unemployment in the USA is at
historic lows and the Federal
Reserve is considering raising
interest rates again to stave off
inflation.

22. The dollar has corrected from its
two year rise but considering that
the US economy is doing the best
of all major economies the US
dollar is the safe currency at the
current time.

23. According to Reuters the U.S.
economic outlook is looking up.

24. The number of Americans filing
for unemployment benefits
unexpectedly fell last week,
pointing to sustained strength in
the labor market despite a sharp
slowdown in hiring last month.

25. Other data on Thursday showed
wholesale inventories recording
their biggest increase in 10
months in April, prompting
economists to raise their second-
quarter economic growth
estimates.

26. The rise in inventories came even
as sales at wholesalers rose for a
second straight month.

27. Initial claims for state
unemployment benefits declined
4,000 to a seasonally adjusted
264,000 for the week ended June
4, the Labor Department said.

28. The drop confounded economists’
expectations for an increase to
270,000.

29. While unemployment is still a
problem in Europe and a growing
issue in China the USA is
essentially at full employment.

30. That is part of why the US dollar is
a safe haven currency.