Hard Currency ETFs to Hedge Market Fears | ETF Trends

Traders found solace in safe-haven currency exchange traded funds as global uncertainty fueled the risk-off environment.

On Tuesday, the CurrencyShares Euro Currency Trust (NYSEArca: FXE) was up 1.0%, CurrencyShares Japanese Yen Trust (NYSEArca: FXY) gained 0.8% and CurrencyShares Swiss Franc Trust (NYSEArca: FXF) was 1.6% higher. Over the past week, FXE added 2.7%, FXY increased 4.7% and FXF rose 3.3%.

The Japanese yen strengthened to 114.8 per U.S. dollars on Tuesday, trading at its strongest to the greenback since 2014. The Eurozone currency rose to $1.1304 or more than a three-month high. The Swiss franc also appreciated to 0.9721 per dollar, its strongest in over three-months as well.

Meanwhile, the PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP) dipped 0.8% Tuesday as the Dollar Index fell 0.7% to 95.888. UUP declined 2.3% over the past week.

The U.S. dollar is trading at near a four-month low Tuesday on growing fears of a global slowdown and weakness in the U.S. markets.