With the Coronavirus devaluing economies and currencies all over the world, what is the strongest currency?
At times of uncertainly, there is always a flight to safety and as global stock markets weaken. The USD remains resilient as currencies are relative to the economies of other countries.
It’s a recurring consensus that the USD is the strongest currency, and Senior Currency Strategist, Hamish Muress from OFX told us:
The dollar is king – possibly also followed by the Japanese Yen and Swiss Franc. Focussing on the USD though it is clear to see how times of huge uncertainty in the market sees investors flood back into the relatively safe US Dollar. Since the start of March the US Dollar has rallied 10% against its global peers.
Typically all of these currencies perform well because investors look to park their assets US Treasuries, Japanese Government Bonds, or Swiss Government Bonds.
Why? Well investors reason that these countries will never default on their debt so they act as safe bets and in order to buy these underlying assets investors first of all need to purchase the domestic currency.
Hence we see in time of uncertainty or ‘risk off’ these currencies perform well.
The likelihood of currency markets closing is very very unlikeky so If you are converting funds to USD, you can compare currency quotes from currency brokers here. Or if you are more interested in speculating or hedging on the foreign exchange markets you can do so through a Forex broker.
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