Franc Truce Threatened as Ukraine Tension Escalates
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Any escalation of the Crimean crisis risks shattering a 17-month truce between currency traders and the Swiss National Bank as demand for haven assets pushes bets on a weaker franc into retreat.
Switzerland’s currency came closer to its 1.2 francs per euro cap than at any time in the past year yesterday as tension between Ukraine and Russia over the southern region of Crimea deepened yesterday. Options traders were the least bearish on the franc since May, and the currency’s appreciation is defying analyst calls for it to drop.