The dollar appreciated against the franc throughout the day and even surpassed 1.00 franc in the afternoon. It is currently oscillating around the mark.
The euro also appreciated against the franc. The EUR/CHF pair rose above 0.97 in the afternoon after falling below it on Friday night. But at the moment the euro is slightly cheaper at 0.9697 CHF.
In the market, it was stated that the dollar benefited from the uncertainty in the financial markets. Earlier in the week, an escalation in the Ukraine war raised new concerns. After explosions at the Crimean bridge, which is strategically important for Russia, rocket attacks were reported in several cities of Ukraine and the capital Kiev on Monday. Investors have been pushed to the safe-haven dollar, while the euro has come under pressure in turn.
The latest data from the US labor market continued to affect the foreign exchange market, according to market watchers. On Friday, a strong US job market report boosted speculation that US interest rates will continue to rise sharply and bolstered the dollar. Relatively low unemployment gives the US Federal Reserve room to fight high inflation with large rate hikes.
However, signs of significant rate hikes in the euro area did not provide a boost to the euro. Dutch ECB Council member Klaas Knot spoke in favor of drastic interest rate hikes in the fight against high inflation. Speaking in Amsterdam, the Governor of the Dutch Central Bank said that at least two more “significant rate hikes” are needed. (SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
