The dollar and the franc are the top choices
Times of crisis reveal which currencies the world truly trusts. Since the start of the conflict in the Middle East, investors have increasingly sought safe havens: The U.S. dollar rose significantly, the Swiss franc also rose, while the Japanese yen remained largely stable.
Why the Dollar Dominates
In the wake of the conflict, the dollar had established itself as the dominant safe-haven currency: Rising oil prices and growing inflation fears led traders to rule out Fed interest rate cuts this year—which provided additional support for the dollar. The Swiss franc also benefited, while the dollar was bolstered by risk aversion and potentially higher interest rate premiums.
The Yen — A Safe Haven with a Question Mark
The picture is more nuanced when it comes to the Japanese yen: While the USD benefits from its role as a global reserve currency, increased risk aversion could provide support for the yen—both currencies have safe-haven characteristics, which makes the USD/JPY currency pair particularly interesting.
Strategic Assessment for Investors
For portfolios with an international focus, the following applies: In the current phase of global uncertainty, it is advisable to hold a portion of liquidity in safe-haven currencies. The USD and CHF remain the most reliable anchors—though the JPY remains an attractive complementary position as long as the Bank of Japan does not make any fundamental changes to its policy.
Safe-haven currencies are not primarily driven by valuation—they are driven by confidence. And it is precisely this confidence that is becoming more selective on a global scale. The 1000FTAD platform helps systematically identify currency risks and position capital where it is truly protected in fragmented markets.
