The euro is hurting, but don’t look for any sympathy in the Swiss franc exchange traded fund (ETF), which is on the move after a downgrade warning was issued for Portugal.
The announcement sent the Swiss franc to a record high. CurrencyShares Swiss Franc Trust (NYSEArca: FXF) also edged up 0.6%, but not quite to record highs. The franc has been one of the year’s best-performing currencies, gaining 14.7% in the last six months. [6 Currency ETFs to Diversify from the Dollar.]
The Swiss franc benefits from not only being a safe-haven currency, but also from the fact that it’s not the euro. Questions about the eurozone economy’s health continue to be raised, and as long as they’re an issue, traders could be driven further into havens like the franc.
Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.