Demand for Safety Drives Swiss Franc Higher

The Swiss franc rose for the third consecutive day versus the euro and strengthened against the US dollar today as the concerns about the financial problems of the Eurozone countries drive the investors to the safety of the Swiss currency.

The gap between yield investors demand on the Portuguese 10-year bonds and the German bunds widened last week most since November. Portugal is going to auction its debt today. The concerns about the ability of the country to raise funds caused the speculation that Portugal would be forced to tap the bailout fund of the European Union.

USD/CHF traded at 0.9662 as of 10:35 GMT today after opening at 0.9683 and reaching the intraday low of 0.9630. EUR/CHF traded at about 1.2460 after it opened at 1.2486 and fell to the today’s low of 1.2432.

If you have any questions, comments or opinions regarding the Swiss Franc,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *