Franc Resumes Rally on Threat of US Default

The Swiss franc resumed its rally today as demand for safety persisted on concerns that the disagreement among US politicians will result in the first default of the United States in history.

The franc sank on the last trading day of the previous week, but trimmed the losses today as the fiscal situation in the USA remained unresolved. US Treasury Secretary Jack Lew talked about the danger of the default on CNN’s “State of the Union” yesterday:

If the United States government, for the first time in its history, chooses not to pay its bills on time, we will be in default. Congress is playing with fire.

USD/CHF fell from 0.9064 to 0.9032 and EUR/CHF dropped from 1.2294 to 1.2263 as of 11:07 GMT today.

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