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Strong Dollar Hits One-Year High

19 Nov 2024

This article is for informational purposes only.

What drives the inflow into the US dollar, Japanese yen and Swiss franc during market turbulence?

đź—˝USD
The US remains the largest economy, and the dollar is the main reserve currency. In times of panic, investors may prefer to hold dollars due to its economic status.

⛩️Japanese Yen
Japan’s net external assets have reached a record high of approximately USD3 trillion, maintaining its status as the world’s largest creditor. This financial strength may support the yen’s hedging function.

🏔️Swiss Franc
CHF benefits from Switzerland’s political neutrality and fiscal prudence, along with the Swiss National Bank’s commitment to currency stability, making it a safe haven for investments.

The USD has reached a one-year high while major currencies have fallen to recent lows. In addition to capitalizing on FX opportunities to buy on dips, it is essential to prioritize the diversification of currency risk in any financial planning.

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