Economics
Swiss Franc’s Pummeling From Reflation Trade Eases SNB Headache
- Currency hits weakest level since October 2019 versus euro
- Path for weaker franc looks clear, Nomura’s Rochester says
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The Swiss franc has become the latest victim of the reflation trade, as investors dumped haven assets to position themselves for a global economic rebound and higher prices.
The franc weakened as much as 0.5% against the euro to hit the lowest since October 2019. Against the dollar, it fell to levels last seen in December. The currency’s sharp slide comes as bond yields climbed the world over and copper hit a multi-year high.