Swiss Franc Strongest on FX Market During Tuesday’s Trading

The Swiss franc was among the strongest currencies on the Forex market today, extending its rally that the currency has started earlier this month. The Swissie found demand among traders after other traditional safe currencies, like the dollar and the yen, have lost steam.

The franc made a huge leap after the Swiss National Bank unpegged the currency from the euro, but the Swissie was falling steadily after that. Yet on March 12 the Swiss currency halted its decline against the dollar and the yen (and even earlier versus the euro) and was slowly crawling higher ever since.

The robust performance of the Swissie can be explained by demand for safety from traders who are concerned about the problems in the eurozone, the potential hard landing of the Chinese economy and other economic issues in the world. With the dollar’ rally losing steam and the continuous weakness of the yen, investors find the Swiss currency an attractive safe investment.

It is important to remember that the Swiss central bank will likely be unhappy by the currency’s rally and may take actions to bring it down.

USD/CHF dropped from 0.9660 to 0.9581 and EUR/CHF declined from 1.0573 to 1.0468 as of 21:24 GMT today. CHF/JPY edged higher from 123.84 to 124.88.

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