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| USD, Japanese Yen benefit from SVB bankruptcy. (Source: Pinterest) |
In the Asian market, the Japanese Yen rose about 0.5% in the early session and extended the 0.6% increase of the session on March 15 to stand at 133.02 Yen per USD.
In addition, the USD index - considered a measure of the greenback's "health" compared to other major currencies - decreased 0.07% to 104.58 this session after increasing by nearly 1% yesterday.
The Euro recovered somewhat in the morning session of March 16 in the Asian market, after a sharp decline on March 15.
Accordingly, the common European currency increased by 0.12% to 1.0591 USD per 1 Euro, after decreasing by 1.4% in the session on March 15. Similarly, the British pound increased by 0.15% to 1.2074 USD per 1 Pound, after decreasing by nearly 0.9% in the session on March 15.
With the situation becoming increasingly unstable and concerns about the risk of a widespread banking crisis, safe havens such as the US dollar and the yen will benefit greatly from investors' demand to "avoid the storm".
Credit Suisse - Switzerland's second-largest bank - is caught in a crisis of confidence following the bankruptcies of SVB and Signature Bank last week.
The "earthquake" of the US banking industry has forced President Joe Biden to implement emergency measures to increase banks' access to capital.
Investors are worried that there may be further signs of a wider banking crisis.
The collapse of two major US banks also caused investors to speculate about the possibility of central banks adjusting their interest rate hike roadmap in the near future.
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