The safe haven Franc has continued to strengthen against most of its peers including the Pound, US Dollar and Euro as the markets avoid riskier assets as the political impasse in the world’s largest economy continues for a second week.
Against the US Dollar the Franc advanced by its highest level in a week after concerns that the US government will be unable to negotiate a budget deal before the October 17th deadline for raising the debt ceiling spooked investors. House Speaker John Boehner said that the country could fail to meet its obligations if President Barrack Obama refuses to negotiate over budget cuts.
Republicans and Democrats have clashed over the controversial Obamacare health laws. The Obama administration said that it won’t negotiate with Republicans over funding the government or raising the debt ceiling, arguing that it is part of the basic functions of Congress and shouldn’t be used as a point of leverage.
“As long as the fiscal situation in the US is not resolved, we’ll continue to see a weaker Dollar and stronger demand for safe-haven currencies like the Yen and Swiss Franc. Our main take is that a compromise will be reached, even if it’s at the last moment” said a senior currency strategist at Milan based UniCredit SpA.
In Switzerland, official data showed that foreign currency reserves fell to CHF432.4 billion in September, down from the CHF434.2 billion recorded in the previous month.
The Franc is likely to make further gains against its peers for as long as the US political stalemate drags on and as the debt ceiling draws closer the Franc could jump significantly.
Current Swiss Franc (CHF) Exchange Rates
Swiss Franc/ Euro Exchange Rate is currently in the region of: 0.8158
Swiss Franc/US Dollar Exchange Rate is currently in the region of: 1.1081
Swiss Franc/ Pound Sterling Exchange Rate is currently in the region of: 0.6898
Swiss Franc/ Australian Dollar Exchange Rate is currently in the region of: 1.1776
(Correct as of 12:00 pm GMT)
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