Yen and franc are on the rise with the decline of the Stocks and US dollar

Investors on Monday turned to safe haven currencies such as the Japanese yen and Swiss franc, and sold the risk-sensitive Australian dollar, due to the sweeping tariffs imposed by US President Donald Trump, and growing fears of a global recession.

The US dollar also fell by 0.63% against the Japanese yen (USDJPY) to 145.92, after falling by more than 1% earlier in the session, continuing its 2% decline against the Japanese currency since last week.

The US dollar also fell by more than 1.5% against the Swiss franc (USDCHF) to 0.8460 per dollar.

The US dollar is usually a safe haven in such fluctuations, but it has declined as uncertainty over tariffs and concern about their impact on US growth increases, as the US economy is rapidly heading towards recession, and it is likely to end up hurting most of the world's economies.

Both the yen and the franc have emerged as winning currencies in the wake of the latest round of tariffs imposed by Trump, as investors abandoned high-risk assets and headed for safe havens, in a move that also saw a rise in government bonds.

Global markets also fell sharply on Monday as Asian stocks and Wall Street futures fell, and investors bet that the increased risk of a sharp economic slowdown could lead to a cut in US interest rates as early as may.

Trump's tariff announcements led to a loss of almost 6 trillion dollars in the value of US stocks last week, and when asked about the impact of this, Trump said on Sunday that sometimes medicine is needed to fix things.

The Standard & Poor's 500 index (SPX) fell by 10.5% over two days, losing about 5 trillion dollars of its market value, the Chinese CSI300 index of leading stocks fell by more than 5% on Monday, while the European STOXX index fell by about 12% from its all-time closing high on March 3 last.