The U.S. dollar is considered a safe haven currency. What does this do to the value of the dollar?
B. A safe haven means that the United States is considered a safe place to invest, especially during times of financial distress. Because of this, during times of world financial distress, the demand for U.S. dollars will shift outward. With floating exchange rates, this will cause the dollar to appreciate and other currencies to depreciate. Also, a larger quantity of dollars will be exchanged.
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