The Swiss Franc climbed against the majority of its peers as investors grow concerned that the recent debt ceiling and budget debacle in the US has damaged the reputation of the world’s main haven currency.
The Franc, which tends to rise in times of financial turmoil climbed against the Pound earlier in the session before relinquishing some of its gains following the release of positive UK retail sales data. Against the ‘Greenback’ the Franc climbed to an 8-day high due to market disappointment over the outcome of the debt ceiling deal.
“The government is still approaching the verge of a default crisis, a situation that cannot be substantially alleviated in the foreseeable future” said Dagong, a Chinese credit ratings agency which cut the USA’s rating from A to A-. The agency was unimpressed that the deal reached simply kicked the US government’s problems down the road leaving a repeat of the recent debacle wide open to occur in the New Year.
The Dollar received a further knock after the monthly Bloomberg survey on Consumer Confidence fell to its lowest level since November 2011.
“The government shutdown has resulted in a startling decline in consumer sentiment and likely business sentiment that will result in a much slower pace of consumption and capital expenditures in the current quarter,” said a senior economist for Bloomberg LP in New York. “Should lawmakers kick a decision into early 2014, it is likely that consumer sentiment will keep deteriorating.”
Against the Euro the Franc was also trading higher after the latest European trade balance data did little to divert attention away from the US.
Current Swiss Franc (CHF) Exchange Rates
Swiss Franc/ Euro Exchange Rate is currently in the region of: 0.8111
Swiss Franc/US Dollar Exchange Rate is currently in the region of: 1.1052
Swiss Franc/ Pound Sterling Exchange Rate is currently in the region of: 0.6880
Swiss Franc/ Australian Dollar Exchange Rate is currently in the region of: 1.1529
(Correct as of 15:25 pm GMT)
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