Swiss franc in second record versus USD in two days

Story link: Swiss franc in second record versus USD in two days

The Swiss franc hit a new record high versus the US dollar for the second day in a row on Wednesday as investors backed away from risk.

It also rose to a two-and-a-half month high in relation to the euro as global equities markets declined on worries about the US economy on a new, more pessimistic growth forecast from the US Federal Reserve.

The franc was as high as SFr1.1025 versus the greenback and traded at SFr1.1035 to the dollar in New York in early afternoon trade, while it was up to SFr1.6369 to the euro, where it remained in afternoon trade in New York.

The flight from risk also benefited the yen, which hit a two-year high against the US dollar and gained against Australian, New Zealand, and South African currencies.

The Japanese currency was as high as ¥108.26 to the dollar and was trading at ¥108.5150 in early afternoon trade in New York, and some analysts are predicting that the yen could rise to ¥104 to the dollar by the end of the year.

At the same time, the yen was trading at ¥160.9712 to the euro, at ¥223.6929 to the pound, and at ¥94.4188 to the Australian dollar.

The UK currency weakened on speculation that the Bank of England will cut interest rates after the minutes of the last meeting of the Bank’s Monetary Policy Committee were released, revealing that the vote then was 7 - 2 in favor of holding the UK interest rate steady, with the two dissenters voting for a rate cut.

It took $2.0614 to buy a pound at early afternoon in New York, while it took €1.3896 to purchase a pound.