Switzerland has long prided itself on being neutral territory. Now its currency is taking its turn as a safe harbor for investors battered by dueling debt crises in the U.S. and Europe, the Wall St Journal writes.
The Swiss franc has risen by 30% over the past year against the U.S. dollar and by more than 4% so far in July. On Monday the franc hit a record high of $1.2408, up 1.6% from Friday. It is also in record territory against the euro, which is down 15% over the last year against the Swiss currency and off nearly 5% this month.
That the currency of Switzerland, a landlocked country with a population less than that of New York City, would turn out to be the best performer in a time of turmoil reflects the degree to which the investing landscape has changed in the years since the financial crisis.
When investors are worried and seeking safety, their primary concern is that—wherever they put their money—they are going to get it back. Historically, the U.S. was deemed safest, so money flowed to the U.S. dollar. Now investors say that is no longer a given...
Find out more at http://online.wsj.com/article/SB10001424053111904772304576468370366953928.html?mod=business_newsreel
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