Safe-haven currencies appreciate
Safe-haven currencies see increased investor demand when there’s uncertainty in the market. The major safe-haven currencies include the Japanese yen, the Swiss franc, and the US dollar. The euro also has started to react like a safe-haven currency. The rise of geopolitical tension in Syria Today, on November 24, with Turkey shooting down a Russian plane near the Syrian border, meant that there was again demand for safe-haven currencies.
The increased tension saw safe-haven currencies increase in value. The US dollar to the Japanese yen pair, which is inversely related to the Japanese yen, fell to a low of 122.37 while the US dollar to Swiss franc pair, which is inversely related to the Swiss franc, fell to a low of 1.02. Among other major currencies, the euro to US dollar pair rose to a high of 1.07 during early trading today.
Impact on the market
Banking ADRs (American Depository Receipts) were trading on a negative note early on November 24, with Credit Suisse Group AG (CS) falling 0.76%. Japanese Banking ADRs Mitsubishi UFJ Financial Group (MTU) and Sumitomo Mitsui Financial Group (SMFG) fell 1.4% and 0.78%, respectively. Japanese leisure goods maker Sony (SNE) rose 0.37%.