The Swiss Franc has fallen against the Pound for a second consecutive day as aversion to riskier currencies waned on signs that a Russian proposed plan to secure Syria’s chemical weapons caches has delayed military strikes against the Assad regime.
Demand for safe haven assets declined at the start of the week due to data out of China beating forecasts as industrial output in the world’s second largest economy strengthened and stabilised after a period of slowing growth.
With the threat of military action in Syria, investors breathed a sigh of relief and once more went back to higher yielding assets. The Swiss Franc which is classed as a safe haven currency weakened in response. Russia offered the Syrians a way to avoid attack by urging Bashar al-Assad that by handing over his stockpiles of chemical weapons to the international community the US would no longer have a reason to strike.
“Market tone continued to be upbeat amid a series of strong Chinese data and calming situation on Syria, as oil and gold prices retreated, the worries on Syria have not completely gone away as disagreement remains on the exact terms of the resolution in the United Nations, but Russia’s proposal has calmed things down for the time being,” said Credit Agricole analysts.
Against the Euro the Franc strengthened as investors were little moved by a speech by European Commission President Jose Manuel Barroso in which he said that the Eurozone’s recovery remains vulnerable and reiterated his calls for a banking union.
Current Swiss Franc (CHF) Exchange Rates
Swiss Franc/ Euro Exchange Rate is currently in the region of: 0.8067
Swiss Franc/US Dollar Exchange Rate is currently in the region of: 1.0706
Swiss Franc/ Pound Sterling Exchange Rate is currently in the region of: 0.6799
Swiss Franc/ Australian Dollar Exchange Rate is currently in the region of: 1.1516
(Correct as of 12:20 pm GMT)
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