Franc Reaches Records Versus Dollar, Euro, Pound on Demand for Safe Assets
The Swiss franc touched records against the dollar, euro and pound as investors sought the safest assets as Moody’s Investors Service said it may downgrade the U.S. credit rating.
Switzerland’s currency appreciated for the fifth straight day against both the dollar and euro, and was also bolstered as Fitch Ratings lowered Greece’s rating three notches to CCC.
“The fear of the U.S. downgrade has led to a swift move to the safe haven currency,” said Sebastien Galy, a foreign- exchange analyst at Societe Generale in London. “ What is moving the franc now is the dollar.”
The Swiss currency appreciated as much as 1.2 percent to a record 80.83 centimes per dollar before trading 0.1 percent stronger at 81.66 centimes as of 5:16 p.m. in London. It strengthened as much as 0.8 percent to 1.14945 per euro and was recently 0.2 percent stronger at 1.15619.
The franc has gained more than 16 percent in the last 12 months against nine developed-market peers measured by Bloomberg Correlation-Weighted Currency Indexes.
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