Here’s Why the Dollar Stands Alone as The Key Currency Haven
- Liquidity, FX reserves, yields all bolster dollar haven status
- U.S.’s debtor status obscures dollar’s position as safe asset
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The haven status of the dollar and the yen came under question in February, with both wobbling as the coronavirus outbreak threatens the two economies.
While the yen rebounded in the last week of the month, showing its historic correlation with market volatility, the dollar has continued to weaken. A closer look at some of the fundamentals though suggest that the greenback should reign as haven supreme if the virus-driven risk aversion turns into panic.