The Swiss franc slumped today against the euro as the equities gained, decreasing the demand for the safe haven, provided by the Swiss currency. The franc fluctuated versus the dollar as the US currency also was affected by the weaker demand for the safety.
The Standard & Poorâs 500 Index gained 0.8 percent, while the Stoxx Europe 600 Index rose as much as 1.2 percent. The concerns for the European economy were eased by the results of the Portuguese debt auction. The demand for the Swiss currency increases in the times of the economic turmoil because the franc considered to be stable currency, as the Swiss trade surplus damps the impact of the foreign influence on the nation’s economy.
The comment of Lutz Karpowitz, the currency strategist at Commerzbank AG, on today’s decline of the franc was:
The Swissieâs function as a safe haven is not in such great demand anymore. Stocks are up, so obviously risk appetite is a bit higher.
USD/CHF fluctuated between 1.0060 and 1.0139, the currency pair opened at 1.0112 and traded near 1.0106 as of 17:16 GMT today. EUR/CHF rose from 1.2823 to 1.2882, it previously reached the intraday low of 1.2766.
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