Foreign exchange: Small haven currencies risk policy backlash

The attractiveness of currencies of smaller triple-A-rated countries has raised the prospect of a backlash from policymakers and heightened the chances of a sudden reversal in their value. Investors looking for a haven from fiscal problems in developed economies have targeted the bonds of the narrowing group of triple-A-rated countries, putting upward pressure on the Australian dollar, Norwegian krone, Swedish krona and the Canadian dollar. There appears to be room for further appreciation, especially as emerging-market reserve managers begin to see their currency reserves grow for the first time in months.