The U.S. dollar held steady at a six-month high against the Japanese yen and a two-month high against the Swiss franc on Thursday, bolstered by solid inflation data and investor sentiment that the greenback stands to benefit from a trade war.
The yen and the Swiss franc are favoured as safe-haven investments. But against the dollar, both have weakened in the past week as trade tensions between the United States and China have mounted. That suggests investors believe the greenback is better suited to withstand trade volatility, as a safe-haven investment or as a beneficiary of new policies.
“The U.S. dollar has been playing more of a role as a safe-haven,” said Juan Perez, currency trader at Tempus, Inc in Washington.
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