🌎#fx #maro #history
many investors fear that the US dollar may continue to weaken due to rising government debt and risky fiscal policies in the US. As a result, they are willing to consider other global currencies to partially replace the dollar in their investment portfolios. Below is a classification of some of these currencies:
🔸 Cyclical currencies (#AUD, #NZD, #CAD, #SEK, #NOK, #GBP): perform well in strong equity markets but lag in downturns. Offer higher yields with greater risk and lower liquidity than #USD or #EUR. #SGD is a liquid alternative that often moves inversely to USD.
🔸 Defensive currencies (#CHF, #JPY, #CNY): hold up better during market stress with lower yields. CHF and JPY are classic safe havens, preferred for stability and capital preservation. #CNY shows low volatility against USD.
🔸 Emerging market currencies (#BRL, #MXN, #ZAR #COP): offer the highest yields but come with high volatility, low liquidity, and capital controls. They may experience sharp declines in risk-offenvironments or when country-specific factors are at play, and tend to attract mostly experienced and risk-tolerant investors.
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