The Swiss franc rose on Wednesday to its highest level against the euro in four months as rising recession fear in the euro zone led investors to seek safe haven assets like the Swiss currency. The Swiss franc, rose 0.6% versus the euro to 1.0005 at 1210 GMT, after touching its highest level of 0.9993 against the single currency since March. Forecasts that the euro zone will likely drop into recession amid energy security issues triggered by the war in Ukraine has encouraged investors to buy the Swiss franc.
The Japanese yen fell as much as 1.9% on Friday after the Bank of Japan bucked a wave of tightening and stuck with its ultra-low interest rate stance, as currency markets looked set for another volatile session after a spate of rate hikes this week. The Swiss National Bank's surprise decision to raise rates by 0.5% continued to reverberate through markets, with the euro losing half a percent and the franc heading back towards two-month highs hit immediately after Thursday's announcement. Currency markets, facing the biggest run of monetary policy tightening for decades, are also having to contend with a massive drop in risk sentiment that has sent equity markets tumbling.
(Bloomberg) -- The Swiss franc staged its biggest rally in years against the euro and the US dollar after the Swiss National Bank unexpectedly hiked rates by 50 basis points.Most Read from BloombergChina Says It May Have Detected Signals From Alien CivilizationsStocks Jump as Powell Soothes Wall Street’s Nerves: Markets WrapFed Hikes 75 Basis Points; Powell Says 75 or 50 Likely in JulyWorld’s Central Banks Got It Wrong, and Economies Pay the PriceAmericans Are Building Vacation-Home Empires With