The Swiss franc extended its gains today as concerns that the European banks would struggle to raise funds after their ratings were downgraded by the rating agencies increased the demand for the Swiss currency as the safe haven.
The Moodyâs Investors Service downgraded Ireland’s debt rating last week and yesterday reduced the ratings of Anglo Irish Bank Corp. and Irish Nationwide Building Society, both of which are controlled by the state, to literally “a junk”. The outlook for Spain’s banks also worsened.
USD/CHF dropped from 0.9648 to 0.9601 as of 10:00 GMT today. EUR/CHF traded near 1.2630 after it opened at 1.2667 and reached the intraday high of 1.2712.
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