Tariff and Growth Worries Boosts Safe-Haven Yen, Swiss Franc
The Japanese yen and Swiss franc strengthened against the dollar on Monday as investors sought safe-haven currencies due to lingering worries over tariffs and a U.S. economic slowdown. Risk-averse investors have slashed net long dollar positions to $15.3 billion from a nine-year high of $35.2 billion in January, sending both currencies to multi-month highs.
- The surge in demand for safe-haven assets highlights the ongoing concerns about trade tensions and their impact on global growth, underscoring the need for policymakers to address these issues.
- Will the recent sell-off in the dollar lead to a prolonged period of weakness, or can it find support from the strong U.S. labor market data?