BLBG:Franc Climbs to Highest Since June Versus Dollar
The Swiss franc climbed to its strongest in five weeks against the dollar, with a fall in Asian equities spurring buying of some haven assets.
“Once again the Swiss franc is sought as a haven,” Martin Furrer at Luzerner Kantonalbank in Lucerne, Switzerland, said in a note to clients. “A weak Japanese equity market gave our country’s currency an additional upward push this morning.”
The Swiss National Bank imposed a ceiling of 1.20 per euro on the franc nearly two years ago to ward off deflation and a recession. The franc had nearly touched parity with the euro in August 2011, as investors anxious about Greece’s debts sold the common currency in favor assets perceived as better stores of value.
The franc stood at 92.82 centimes at 11:46 am in Zurich, having risen as much as 0.3 percent to 92.70 centimes against the dollar earlier in the session, its strongest since June 21. Against the euro it was little changed at 1.2336.
Asian stocks fell, with Japanese shares declining the most in six weeks. Swiss stocks also weakened, down to a three-week low as investors awaited a U.S. report on consumer sentiment.
To contact the reporter on this story: Catherine Bosley in Zurich at cbosley1@bloomberg.net
To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net
