The Swiss franc gained as the unrest in Middle East and the surging oil prices increased appeal of safer assets, including Switzerland’s currency.
The rebels in Libya advanced towards Ras Lanuf, the oil port town about halfway to the capital of the country. Meanwhile, the government forces used the tear gas and the gunfire to stop the protesters in Tripoli. The opposition claimed that the conflict already has caused 6,000 deaths. April delivery for crude oil advanced as much as 3.2 percent to $105.17 per barrel in New York, the highest price since September 2008.
Dennis Cajigas, the senior market strategist at the brokerage MF Global Holdings Ltd., commented on the moves of the franc:
Weâre seeing a certain amount of flight to quality because of concerns in the Middle East. The Swissie is making big moves largely due to that.
USD/CHF closed at 0.9258 after it opened at 0.9315 and fell to the intraday low of 0.9224. EUR/CHF closed at 1.2947 after opening at 1.3011 and falling to 1.2915.
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