The Swiss franc rose to a one-month high against the euro in early Thursday trading as investors, rattled by a downgrade to Spain's sovereign credit rating and warnings of flagging global growth, shied away from risk. The franc rose 0.2 percent against the euro to trade at 1.2084 by 0541 GMT, its highest since September 12. Against the dollar the franc was little changed trading at 0.9389.
Standard & Poor's cut Spain's sovereign credit rating by two notches to BBB-minus, just above junk territory, citing a deepening economic recession that is crimping the government's ability to arrest the slide. "The slow progress towards a sovereign bailout for Spain will have likely played a role in the decision, a factor that is also weighing on general market sentiment," Mitul Kotecha, head of Global Foreign Exchange Strategy at Credit Agricole, said in a note.
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