The Swiss franc was firmer against the euro and the dollar on Monday helped by a flow of funds towards safe-haven currencies as investors cut back on riskier positions. Lower-yielding currencies such as the Swiss franc and the yen, used to fund the carry trade, have strengthened as investors have dumped higher yielding currencies such as the Australian and New Zealand dollars.
The switch into safer assets has followed sharp falls in US stocks and corporate bonds last week. The franc was firmer against the euro at 1.6469 francs per euro, after recovering in Friday's session to 1.6472 francs from a 9-year low at 1.6687 hit last week.
The franc was also firmer against the dollar at 1.2073 francs per dollar, up from 1.2084 francs late on Friday. The franc has been under pressure for months as investors borrowed the franc to buy higher-yielding currencies in carry trades, using the difference in interest rates of 2.5 percent in Switzerland and 4.0 percent in the euro zone.
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