The Swiss franc lost ground against the euro on Tuesday as investors put money back into stock markets, while weak Swiss trade data also weighed on the safe haven currency.
"The drop is due to (waning) risk aversion, the economic data are not having the biggest impact. Equity markets are recovering, and that is why the franc is weaker," said Ronald Plasser, an analyst at Austria's Raiffeisen Bank.
"As soon as the stock market will weaken again, you'll see the franc strengthen," he said. Stock markets across Europe recovered after Monday's losses, with Switzerland's SMI blue chip index rising 0.8 percent and the FTSE euro first 300 gaining 0.7 percent.
The franc was some 0.1 percent weaker against the euro, changing hands for 1.6121 francs per euro. The Swiss currency had fallen 0.3 percent against the dollar by that time, at 1.0922 francs per dollar.
Any rise in stock markets has been sapping the franc in recent months, as dealers resume risky carry trades, selling the franc to invest in higher-yielding currencies. Financial turmoil however, leads to an unwinding of the carry trade, sensitive to sudden interest rate rises.
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