It is commonly known that the dollar has safe haven status. During the recent subprime meltdown it was evident as the dollar grew stonger against all currencies exept the Yen.
What i would like to gain are others perspectives as to why this happens. People are not simply buying the dollar because it's a safe haven and thats what you do; are they?
I feel it could be the huge amount of US equity investors and US and foreign forex traders repatriating their funds into US dollars in times when riskier assets are not as favourable. The dollar may also gain due to the increase in treasury note demand at this time, seen as the US Treasury note is the most favourable (am i correct in saying this?).
Others views addressing why this happens would be greatly appreciated. Thanks!
What i would like to gain are others perspectives as to why this happens. People are not simply buying the dollar because it's a safe haven and thats what you do; are they?
I feel it could be the huge amount of US equity investors and US and foreign forex traders repatriating their funds into US dollars in times when riskier assets are not as favourable. The dollar may also gain due to the increase in treasury note demand at this time, seen as the US Treasury note is the most favourable (am i correct in saying this?).
Others views addressing why this happens would be greatly appreciated. Thanks!