Swiss Franc Falls as Stocks Rally and Recovery Continues
The Swiss franc weakened today versus the U.S. dollar and the euro as the U.S. and the European economies show signs of recovery, damping demand for the franc as the safe currency and drawing the investors to the riskier assets.
The MSCI World Index of stocks and futures gained 0.3 percent. The economists, including Charles Plosser, the president of the Federal Reserve Bank of Philadelphia, think that it’s too early to talk about increasing the stimulus, which is already significant, by the Federal Reserve. Plosser said that
Talk of new efforts to stimulate the economy are premature right now. I don’t think the data have been sufficiently compelling one way or another.
USD/CHF jumped to 1.0588 from 1.0484 today as of 11:02 GMT. EUR/CHF traded at 1.3761 after it opened at 1.3773.
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Earlier News About the Swiss Franc:
- Franc Falls, Causing Talks About SNB Intervention (2010-07-01)
- Franc Appreciated as Deflationary Concerns Waned (2010-06-29)
- Swiss Franc Gains as SNB Thinks Risk of Deflation Gone (2010-06-17)
- Swiss Franc at Record High Against Euro on Stronger Economy (2010-06-04)
- Swiss Franc Falls with Slower Economic Growth (2010-06-01)