Risk aversion within the forex is really a kind of trading behavior exhibited by the foreign exchange 

marketplace when a potentially adverse event happens which may possibly have an effect on market conditions. This 

behavior is caused when risk averse traders liquidate their positions in risky assets and 

shift the funds to less risky assets on account of uncertainty.[23]

In the context of the forex market, traders liquidate their positions in numerous currencies 

to take up positions in safe haven currencies, such as the US Dollar.[24] Often, the 

option of a safe haven currency is more of a choice based on prevailing sentiments rather 

than 1 of economic statistics. An example would be the Monetary Crisis of 2008. The worth 

of equities across planet fell while the US Dollar strengthened (see Fig.1). This happened 

despite the strong focus of the crisis inside the USA.