Swiss franc rises

16 Feb, 2008

The Swiss franc rose against the euro and the dollar on Friday as investors turned more cautious after the head of the Federal Reserve said risks to US economic growth had increased. "Bad news from UBS and worries about the US economy will push equity markets down and this will help the Swiss franc," said Clariden Leu's Sandro Baechli.
The franc was trading 0.1 percent higher versus the dollar compared to the New York close, changing hands at 1.0965 per dollar. Fed chairman Ben Bernanke told the US Senate Banking Committee on Thursday that the central bank "will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks."
The franc was slightly higher against the euro at 1.6065 per euro. The franc has closely reflected swings in stock markets recently as investors take equities as a barometer for risk demand and the franc is seen as a safe haven in times of big risks and high volatility.

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