The US government’s inability to come up with a workable solution to the nation’s budget disagreements left the US Dollar floundering during the North American session.
The Swiss Franc exchange rate was in the region of 0.9004 against the US Dollar as of 11:15 GMT
With risk-aversion sparked by the consequent federal shutdown, the ‘Greenback’ retained declines as the European session opened and plummeted to a nineteen-month low against the safe-haven Swiss Franc.
The European asset was broadly bolstered by the concerning US development, gaining on the majority of its most traded rivals and briefly brushing 0.8989 against its American counterpart. The Franc also rallied against the Euro as the common currency fluctuated in response to a pretty mixed bag of domestic data.
The USD/CHF pairing hit a low of 0.8989
In response to the Franc’s movement London-based industry expert Michael Plavnik commented; ‘That really is the safe haven, reserve currency move. We’ve also actually seen the Swiss economy do quite well relatively so there’s maybe some pressure on the Swiss National Bank. They’ve gotten pretty much a free ride on the 1.20 peg so we may begin to actually test it. I don’t think we’ll get there but we might make it uncomfortable for the SNB’.
The Euro/Franc exchange rate experienced movement as German unemployment rose unexpectedly while Eurozone unemployment surprised economists by declining to 12.0 per cent in August.
In other Franc news, the Swiss central bank today reported that around 1,800 invalid 1,000-Franc banknotes are currently in circulation.
The fraudulent currency is worth in the region of 1.8 million Francs and has been in use since being stolen from Orell Fuessli Holding AG during the production process in the autumn of 2012.
The SNB has pledged that any holders of these invalid banknotes will be reimbursed.
Any developments in the US political situation are likely to impact the Franc, but investors will also be looking ahead to the week’s major data – the US non-farm payrolls report scheduled for release on Friday.
Current Exchange Rates:
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The Pound Sterling/Swiss Franc Exchange Rate is currently in the region of: 1.4673 >
The Euro/Swiss Franc Exchange Rate is currently in the region of: 0.7504 <
The US Dollar/ Swiss Franc Exchange Rate is currently in the region of: 0.9004 >
(Correct as of 11:15 GMT)
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