In the forex market, there are various choices of the world’s best currencies that you can sell. Each of these currencies certainly has different characteristics. One important characteristic for you to consider is the ability of the currency to remain stable during a crisis. This kind of currency is called a safe-haven currency.
Several safe-haven currencies are always the target of traders and investors when trading forex. According to Investopedia, in volatile markets, investors and currency traders may seek to convert holdings of cash into these currencies for protection.
Check out these safe-haven currencies that you should try:
Japanese Yen (JPY)
Most investors and traders often use Japanese Yen which has a JPY code as a safe-haven currency. This is due to the Japanese economy being very stable. Additionally, the Japanese government’s policy of routine repatriation of the yen to maintain the stability of the yen exchange rate.
Thus, the assets that you place in yen will be better maintained and not vulnerable to fluctuations due to changes in the global economy.
Swiss Franc (CHF)
Switzerland is the capital of world peace. Moreover, people hold many various important agreements and meetings many times in this country. This is evidence of the stability of the political and economic system. Then, it makes the franc, the Swiss national currency, also very stable.
In addition to strong political conditions and far from conflict, Switzerland also has a sophisticated banking system and economic management capabilities that have been recognized worldwide. Therefore, the value of the Swiss currency is always stable even though the world economy is experiencing uncertainty.
United States Dollar (USD)
As the country with the largest economy in the world, the United States has one of the currencies with the strongest value in the world. Not surprisingly, there are many traders who use the US dollar (USD) as one of the currencies. Moreover, most international trade transactions use dollars as a legal currency.
By doing forex trading using the safe-haven currency, you can more easily predict the direction of price movements despite economic uncertainty.
For example, during the current trade war between the United States and China, the value of the USD and JPY currencies tends to increase due to a large number of investors who choose to secure their assets in these established countries.
Read more: 5 Advantages of Commodity Trading that You Need to Know