Best safe-haven currency of year named

The US dollar as the best safe-haven currency in what’s left of turbulent 2020, Report says, citing CNBC.

According to the analysts at Morgan Stanley, the greenback fell to a 27-month low on Tuesday against a basket of its peers, where the dollar index reached 92.477 ⁠— a level not seen since May 2018 as investors took on more risk. The S&P 500 rose to its highest level ever after regaining all its coronavirus-related losses, having rallied more than 54% from its March low. 

We expect the US dollar (USD) to be the best safe-haven currency, especially now that lower US rates make it a more attractive funding currency for carrying trades,” Morgan Stanley analysts wrote in a research note. Still, the analysts expect risk sentiment should remain supported, for now. Hence they said they keep a “bearish skew” on the dollar. 

Some currency strategists have said that political uncertainties in the US, including a stalemate over coronavirus stimulus, is also hurting the dollar.