Gains of Franc on Greece’s Downgrade & US Problems

The Swiss franc gained after demand for safe assets was boosted by the downgrade of Greece’s credit rating by Fitch Ratings.

Fitch cut Greece’s rating to ‘B+’ and put it on the negative watch. The rating agency explained this decision:

The ‘B+’ rating incorporates Fitch’s expectation that substantial new money will be provided to Greece by the EU and IMF and that Greek sovereign bonds will not be subject to a ‘soft restructuring’ or ‘re-profiling‘ that would trigger a ‘credit event’ and default rating from Fitch.

The franc appreciated 0.4 percent against the US dollar. The currency also gained 1.2 percent versus the euro.

USD/CHF dropped from the opening rate of 0.8806 to the closing price of 0.8772, following the advance to 0.8854. EUR/CHF sank from 1.2601 to 1.2422. CHF/JPY climbed from 92.61 to 93.08.

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