Bloomberg News

Franc Touches Records Versus Dollar, Euro on Demand for Safety

July 14, 2011

July 14 (Bloomberg) -- The Swiss franc touched records against the dollar, euro and pound as investors sought the safest assets as Moody’s Investors Service said it may downgrade the U.S. credit rating.

Switzerland’s currency appreciated for the fifth straight day against both the dollar and euro, and was also bolstered as Fitch Ratings lowered Greece’s rating three notches to CCC.

“The fear of the U.S. downgrade has led to a swift move to the safe haven currency,” said Sebastien Galy, a foreign- exchange analyst at Societe Generale in London. “ What is moving the franc now is the dollar.”

The Swiss currency appreciated as much as 1.2 percent to a record 80.83 centimes per dollar before trading 0.1 percent stronger at 81.66 centimes as of 5:16 p.m. in London. It strengthened as much as 0.8 percent to 1.14945 per euro and was recently 0.2 percent stronger at 1.15619.

The franc has gained more than 16 percent in the last 12 months against nine developed-market peers measured by Bloomberg Correlation-Weighted Currency Indexes.

--Editors: Matthew Brown, Keith Campbell.

To contact the reporter on this story: Emily Blewett in London at eblewett@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net


Tim Cook's Reboot
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus