The Swiss Franc fell to its lowest level since mid-August against the Pound and fell to a one-month low against the US Dollar as investors once again found their appetite for riskier assets.
Fresh signs of an improvement in the global economy saw investors renew their demand for riskier currencies which weighed heavily on the safe haven Yen and Franc. Improved manufacturing data out of Europe, UK and China and as the threat of an imminent strike against Syria subsides spurred on demand for riskier assets.
The official data out of China caused the biggest impact on the markets. The data release showed that the world’s second largest economies service sector grew steadily in August as domestic demand for goods improved. The improving Eurozone and US economies have also boosted demand for riskier assets.
The Franc was weaker despite posting positive economic growth data. According to the Secretariat for economic affairs in Bern Swiss gross domestic product increased by 0.5% in the second quarter of 2013, slightly down from the 0.6% recorded in the first part of the year. The figure beat economist expectations for a 0.3% rise. On a year-by-year basis Switzerland’s GDP has expanded by 2.5%.
The Franc is likely to strengthen again as next week approaches. The US and France have not ruled out a military strike against Syria and it is likely that action will take place after the 9th of September, if President Barrack Obama wins the congressional vote in favour of action.
Current Swiss Franc (CHF) Exchange Rates
Swiss Franc/ Euro Exchange Rate is currently in the region of: 0.8106
Swiss Franc/US Dollar Exchange Rate is currently in the region of: 1.0680
Swiss Franc/ Pound Sterling Exchange Rate is currently in the region of: 0.6855
Swiss Franc/ Australian Dollar Exchange Rate is currently in the region of: 1.1834
(Correct as of 12:00 pm GMT)
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