Increased volatility in the foreign exchange market has led investors to flock to safe-haven currencies.
AI Summary1 min read
TL;DR
Increased forex volatility due to stock sell-offs is driving investors to safe-haven currencies like the Swiss franc and yen, with the dollar falling against them. The UK budget's no tax hike weighed on the pound, and Fed rate cut expectations have diminished.
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foreign exchangesafe-haven currenciesvolatilityinvestor behaviorFederal Reserve
According to Mars Finance, as reported by Jinshi, volatility in the foreign exchange market intensified on Friday as a sell-off in stocks prompted investors to flock to safe-haven assets. The UK's budget this month will not raise income taxes, which weighed on the pound. Traders believe the likelihood of a Federal Reserve rate cut in December is far lower than expected a few weeks ago, leading to a sell-off in highly valued US stocks and government bonds, with funds flowing into the Swiss franc and yen. Latest market data shows that the US dollar fell 0.5% against both the Swiss franc and the Japanese yen.