An exchange traded fund tracking the movement of the Swiss franc against the dollar jumped more than 2% on Tuesday to a fresh record as the currency also rose to a new high against the euro.
Investors have been bidding the Swiss franc higher in currency markets as they look for protection from debt turmoil and a potential economic slowdown. The Eurozone crisis is heating up again and traders are worried the U.S. may lose its triple-A credit rating even though the debt deal has passed Congress.
Switzerland’s currency rose against all of its 16 major rivals tracked by Bloomberg, according to a report.
“Economic fundamentals will keep the franc favored as a haven. We may see further strengthening against the euro,” said Sebastian Galy, a foreign-exchange strategist at Societe Generale SA, in the report. [Risk Aversion Sends Traders To Safe-Haven Currencies, ETFs]
CurrencyShares Swiss Franc Trust (NYSEArca: FXF) follows the path of the Swiss franc versus the greenback. There are no ETFs that track the franc against the euro. [Gold, Silver ETFs Higher as Situation Worsens in Italy]