The Swiss Franc made gains against all 16 of its most traded peers as concerns that the US Federal Reserve will begin to reduce its monetary easing programme in September boosted demand for the safe haven Franc.
The Swiss Franc began to make gains against the Pound and US Dollar as Asian emerging market currencies extended their losses on the prospect of increasing outflows of foreign cash as investors withdraw from riskier regions. The Indian Rupee tumbled to another record low and the Indonesian Rupiah hit its lowest level since 2009. It wasn’t just Asian currency’s that felt the effects; the South African Rand has also gone into a downward spiral.
“The fear of an end of the ultra-easy money from the Fed scared away investors. We can probably expect new impetus on Wednesday, when the minutes of the US Central Bank’s July meeting are published,” said Marco Birrfelder an interest rate trader at a Swiss Bank.
As a safe-haven currency, the franc rose to record levels through the global recession before pulling back after the Swiss National Bank imposed a 1.20 per Euro cap. It remains at historically high levels despite recent apparent improvements in global economic conditions.
Wednesday is likely to be a day of high volatility for most currencies and as the release for the Federal Reserve’s July minutes draws closer we can expect the Swiss Franc to edge higher against its peers as more and more investors seek shelter in the safe haven currency.
Current Swiss Franc (CHF) Exchange Rates
Swiss Franc/ Euro Exchange Rate is currently in the region of: 0.8136
Swiss Franc/US Dollar Exchange Rate is currently in the region of: 1.0869
Swiss Franc/ Pound Sterling Exchange Rate is currently in the region of: 0.6931
Swiss Franc/ Australian Dollar Exchange Rate is currently in the region of: 1.2000
(Correct as of 12:30 pm GMT)
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