The Swiss franc rose today to the highest level since March 2008 against the US dollar as the attractiveness of the currency as the safe haven increased after the Federal Reserve signaled it may restart buying of the securities.
The Federal Open Market Committee stated yesterday:
The Committee also will maintain its existing policy of reinvesting principal payments from its securities holdings.
These words may suggest about restarting of the quantitative easing policy, buying of the government debt with new money. This prospect drove the investors from the dollar to the relative safety of the franc.
USD/CHF slid from 0.9962 to 0.9892 today as of 11:37 GMT, after falling to the lowest level since March 2008 of 0.9873.
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