The Swiss franc rose against the euro and the dollar on Monday as investors moved away from riskier assets, such as equities, and favoured the safe-haven franc.
"We see a stronger Swiss franc today. The franc is benefiting from uncertainties and we see this continuing. Swiss equity markets are negative today and fears that the United States is in a recession will also support the franc," Clariden Leu's Sandro Baechli said. The franc rose against the euro compared to the New York close of 1.608 per euro, trading at 1.6042 per euro.
The franc was also stronger against the dollar at 1.0138 per dollar. The low-yielding franc, like the yen, is benefiting from risk aversion and an unwinding of carry trades due to growing concerns about the economy. Traders often move into less risky positions, such as the franc, when equity markets fall.
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