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Swiss franc strengthens as global bond sell-off boosts safe-haven demand
The USD/CHF pair fell about 1.2% in the last two days, with the franc reaching a daily low near 0.8266 after earlier 16-month highs around 0.8382.
FXStreet reports the Swiss franc is gaining safe-haven appeal as investors turn away from global government bonds amid a broader bond sell-off.
The publication says USD/CHF has dropped about 1.2% over the last two days, hitting daily lows near 0.8266 after rising to 16-month highs around 0.8382 earlier this week.
FXStreet attributes the shift to rising risk aversion as global treasury yields increase, with investors seeking higher returns as budget deficits grow and energy prices push major central banks toward tighter monetary policy.
In that context, FXStreet highlights Switzerland’s relatively lower total net debt, citing CHF 149 billion, or about 15% of GDP, while noting higher debt burdens for countries such as France and the US.