Commerzbank's Thu Lan Nguyen says the Swiss Franc has become the top safe haven currency, even more than the Dollar and Japanese Yen. Even though Switzerland isn't a major currency issuer or big energy exporter, the Franc has kept rising during times of market stress. The Swiss National Bank doesn't have many tools to weaken the Franc, so if tensions in the Middle East increase, the Franc could get even stronger.
Franc has been performing better during times when investors are more cautious about risk.
Right now, the best safe choice when it comes to currencies is not the US dollar, but the Swiss franc—something that was already noticed last year.
The franc isn't the world's main currency used for saving money, and Switzerland doesn't send out more oil and gas than it uses. In this situation, there's another reason that matters.
A safe-haven status becomes stronger on its own. This means that the more often a currency goes up in value when there is uncertainty, the more powerful this effect gets.
The reason the franc is doing well right now is because other usual safe choices, like the dollar and the Japanese yen, have lost some of their appeal. The dollar has been affected by uncertain policies from the White House, and the yen is struggling because of worries about Japan's finances.
Another point supports the franc: the Swiss National Bank can no longer easily make it weaker.
If the situation in the Middle East gets worse, the franc is likely to become stronger.
Franc has been performing better during times when investors are more cautious about risk.
Right now, the best safe choice when it comes to currencies is not the US dollar, but the Swiss franc—something that was already noticed last year.
The franc isn't the world's main currency used for saving money, and Switzerland doesn't send out more oil and gas than it uses. In this situation, there's another reason that matters.
A safe-haven status becomes stronger on its own. This means that the more often a currency goes up in value when there is uncertainty, the more powerful this effect gets.
The reason the franc is doing well right now is because other usual safe choices, like the dollar and the Japanese yen, have lost some of their appeal. The dollar has been affected by uncertain policies from the White House, and the yen is struggling because of worries about Japan's finances.
Another point supports the franc: the Swiss National Bank can no longer easily make it weaker.
If the situation in the Middle East gets worse, the franc is likely to become stronger.
