The surge in equity markets weakened demand for safe-haven currencies: US dollar, Swiss franc, pound and yen weakened against the euro.
Swiss franc – The euro gained more than 18 cents in three weeks against the Swiss franc. It crossed the 1,18 handle this morning, with the Swiss currency under pressure as action by the Swiss National Bank (SNB) to diminish its strength. The euro was up 1,1% to 1,1820 francs, the highest value in the last two months. The dollar also rose by 0,9% to 0,8133 francs. Banking giant UBS said on Friday it could levy a surcharge on deposits to discourage safe-haven flows in this period of high volatility in financial markets.
Yen – The Japanese currency also depreciated against other major currencies as Asian markets closed in the green for the third consecutive day. The yen remains weak against the dollar after theelection di Yoshihiko Noda as president of the Democratic Party. Around 9 am, the dollar traded for 76,72 yen and the euro for 111,22 yen.
Dollar – The US currency appears under pressure against a basket of currencies. The euro hit a two-month high against the dollar on fears that the Federal Reserve may offer stimulus action in September to address uncertainty over the growth outlook. At 11.00 the euro gained 0,15% reaching 1,4515 dollars.
GBP – The euro was also up against the British currency, up 0,16%, reaching 0,8873 pounds per euro at 8.30 this morning.
