Dollar and Dollar-denominated bonds continue to play a safe-haven role – Natixis
|Economists at Natixis seek to determine whether or not the Dollar or Dollar-denominated bonds continue to play a safe haven role in times of crisis and rising risk aversion.
Is the Dollar still a safe haven asset?
“We found a significant effect of a rise in risk aversion (in the sense that higher risk aversion leads to a lower US long-term interest rate and an appreciation of the Dollar) as regards the Dollar long-term interest rate and the Dollar/Euro exchange rate, but, curiously, not as regards non-residents' purchases of US bonds and liquid assets.”
“We also found that in the recent period (since 2012), the effect of risk aversion on the long-term interest rate and on the Dollar/Euro exchange rate has been stronger than in previous periods.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.