Safe-haven currencies could benefit from geopolitical turmoil.
(Photo: AP)
Frankfurt In times of crisis, investors usually follow a simple pattern: get out of the risk. This can also be seen on the foreign exchange market. Since the Russian war against Ukraine and subsequent sanctions, the ruble has plummeted. The Russian currency has lost more than 30 percent of its value since the invasion began.
But not only Russia is feeling the effects of the measures, to a lesser extent they are also noticeable in Europe. Countries like Germany are heavily dependent on Russian energy imports. The euro has therefore also lost value.
On the other hand, currencies that are seen as a safe haven in times of uncertainty, such as the US dollar, Swiss franc and Japanese yen, rose.
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