A safe-haven currency, such as the US dollar, Swiss franc, or Japanese yen, tends to strengthen when markets are fearful and investors seek safety. Understanding safe-haven flows helps explain why some currencies rise during crises even when their economy is weak.
Forex Term
Safe Haven
A currency investors buy when markets get fearful.
Example
During a market panic, traders often buy the Japanese yen as a safe haven.
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Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.