The Swiss franc, which is consider the safe currency, rose against the euro in the first half of this week as demand for the safety increased, but slumped in the second half as the risk appetite improved. The franc slid versus the greenback at the end of the week, but decline wasn’t strong enough to erase the previous gains.
The Swiss currency was bolstered by the concerns for the economic growth at the beginning of this week. The whole world looks on the US economy to evaluate the stability of the economic recovery, and the US economy tends to show the signs of the weakness. But the second half of the week was marked by the surge of the risk appetite as the economic data from the US, especially from the housing and the labor, markets was surprisingly good.
Thus, the franc erased its previous gains against the euro. The decline versus the US dollar was much smaller as the greenback also weakened by the decreasing demand for the safe currencies, and in the end the franc closed above the opening level.
USD/CHF slumped on Monday and continued to decline on Tuesday, touching 1.0065, the lowest level since November 2009. Later the dollar recovered and even jumped to 1.0237 on Friday, but it closed at 1.0170, compared to the opening level of 1.0272. The franc rose to the record high level of 1.2850 versus the euro on Tuesday, but later the European 16-nation currency rebounded, closing almost at the opening level of 1.3114 (it closed at 1.3115).
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