The Swiss franc weakened versus the euro as the efforts of the European and Asian governments to contain the European debt crisis and the advance of commodities and stocks decreased demand for the currency as a safe haven.
Portuguese bonds advanced in the second half of the previous trading session after Portugal auctioned its debt in the first half. European leaders are going to meet next week in order to discuss the bailout for Portugal. The rescue fund, used to bailout indebted nations, may be increased to be able to help larger economies. The good economic growth of Germany also helped to restore the confidence in the economy and the currency of the European Union.
Elsa Lignos, a currency strategist at Royal Bank of Canadaâs RBC Capital Markets, said:
Signs that EU policy makers are getting ready to take some action, and couple that with Asian support, are helping equities have a great day
The Swiss franc, being the safe currency, tends to fall when stocks and commodities rally.
USD/CHF dropped from 0.9735 to 0.9664 on yesterday’s trading session and traded today at about 0.9675 as of 00:53 GMT. EUR/CHF traded near 1.2711 after yesterday’s advance from 1.2630 to 1.2693.
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