The Swiss franc is traditionally thought of as a safe-haven currency — during times of international uncertainty or tension, buyers tend to flock to the currency. However, in recent months global investors have had more of an appetite for risk.
“When risk appetite wanes and people are worried, people often buy the Swiss franc,” Callow says. “It is seen as a port in the storm, a safety play.
After the Sept. 11 attacks, the Swiss franc was one of the strongest currencies.” However, in the current environment, “when there is quite a bit of risk appetite, the Swiss franc is not as appealing. There are no great panics in the market,” he adds.
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