Franc Is Most Expensive Currency as Taylor Sees Euro Parity
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Even after making the Swiss franc the most over-valued major currency, traders are betting on more strength as the European Union’s sovereign-debt crisis begins to infect bigger economies.
The franc rose to a record today against the dollar, euro and pound as bond yields in Italy and Spain surged to euro-lifetime highs. The cost to hedge a drop in the euro versus the franc climbed to the most since January 2009, signaling concern the EU may fail to contain a crisis that has already forced Greece, Portugal and Ireland to seek financial bailouts.