The Japanese yen and Swiss franc both saw gains today, as investors sought safe assets following a tech-led sell-off and broader risk-off mood in global markets.
The US dollar also held up relatively strong, supported by safe-haven flows, even though some traders expect future rate cuts.
Why this matters: When risk appetite falls, safe-haven currencies tend to benefit — this has implications for countries with large foreign-exchange exposures, imports/exports, and debt denominated in foreign currencies.