In Battle of Havens, Investors Bet on Yen Over Swiss Franc

Investors are betting that the Japanese yen will do better this year than its haven counterpart, the Swiss franc.

With waning political risks in Europe and the Swiss National Bank reluctant to move away from its rhetoric on a “highly valued” currency, options markets favor the yen and analysts see the franc weakening. Add in speculation that the Bank of Japan will take tentative steps toward normalizing policy before the SNB, and that’s leading Investec Asset Management Limited to short the Swiss currency against the yen.