The Swiss franc climbed today as the drop of stocks and speculations about possible reduction of monetary stimulus by the Federal Reserve made the currency attractive to investors because of its role as a safe haven.
The Stoxx Europe 600 Index of shares fell 0.9 percent, while the MSCI Asia Pacific Index slumped as much as 1.7 percent. The decline resulted in higher demand for safer assets. On top of that, speculations about quantitative easing tampering were driving riskier currencies down, adding to the strength of the franc, which is still considered to be relatively safe investment.
USD/CHF fell from 0.9238 to 0.9185, while CHF/JPY rose from 105.52 to 150.91 as of 12:52 GMT today.
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