The Swiss Franc has weakened to its lowest level since January against the Euro after positive jobs data out of the United States caused a decline in demand for the safest assets.
The ‘Greenback’ surged upwards overnight due to yesterday’s better-than-expected jobless data. Against the Japanese Yen the Dollar breached the Y100 mark for the first time in four-years. It then went on to breach the Y101 mark before retreating.
“The macro data especially the U.S. jobs market have gotten better,” said Alessandro Bee, an economist at Bank Sarasin & Cie AG in Zurich. “It’s an environment where people want risk — the stock markets are doing well and that’s a situation when you sell safe assets like the franc.”
The number of people claiming unemployment insurance unexpectedly dropped to 323,000 in the week ending on the 4 May, the lowest level in five years. The strong data caused investors to seek riskier assets as confidence over a global recovery increases.
The Swiss Franc is capped at 1.20 per Euro after the Swiss Central Bank pegged the currency in September 2011 to ward off deflation and a recession. Investors had pushed up the franc sharply against the Euro as they looked for safer place to put their money due to the region’s debt crisis.
Current Swiss Franc (CHF) Exchange Rates
Swiss Franc/ Euro Exchange Rate is currently in the region of: 0.8045
Swiss Franc/US Dollar Exchange Rate is currently in the region of: 1.0484
Swiss Franc/ Pound Sterling Exchange Rate is currently in the region of: 0.6791
Swiss Franc/ Australian Dollar Exchange Rate is currently in the region of: 1.0426
(Correct as of 11:15 am GMT)
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