Safe-Haven Currency

A safe-haven currency is one that investors tend to buy during periods of market stress, geopolitical uncertainty, or risk aversion, because it's seen as more stable or liquid than riskier alternatives — the US dollar, Japanese yen, and Swiss franc are the classic examples. Demand for safe havens typically rises sharply during equity sell-offs or global crises. The flip side is "risk-on" currencies (like AUD or NZD), which tend to strengthen when investor sentiment is calm and appetite for riskier assets returns.