Worth just 85 cents: Dollar falls to multi-year low against Swiss franc

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At the same time, the euro fell against the franc: in the afternoon the common currency briefly fell below 94 cents, before recovering slightly to 0.9407 francs.

The dollar’s current significant weakness is probably not due to recent disappointing data from the US economy. According to the market, this would support the possibility of the US central bank, the Fed, lowering interest rates next year. The dollar is hurting because the possibility of falling interest rates hurts the attractiveness of investments in the United States.

Franconia as a “safe haven”

The Swiss franc has gained significant strength this year compared to other major currencies. The Swiss National Bank supported the franc through foreign exchange sales throughout the year, in addition to the currency’s traditional “safe haven” function. Thanks to the strong franc, they managed to prevent high inflation imported from abroad.

However, monetary authorities changed their foreign exchange policy last week, taking into account falling inflation figures. In his latest assessment of the situation, SNB boss Thomas Jordan explained that the SNB wanted to remain active in the foreign exchange market if necessary. But foreign exchange sales are “no longer prioritized.” (SDA/smt)

Source :Blick