Safe-haven currencies like the Swiss franc stayed under pressure in Asia on Tuesday, following a solid performance in riskier assets overnight that drove commodity currencies sharply higher.
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"For the Swiss franc to look like an attractive funding currency again when it is in competition with so many other currencies at the moment we would need to see....direct intervention on the part of the Swiss National Bank," Adam Cole, head of currency strategy, RBC. He added that he did not...
The Swiss franc edged higher versus the euro on Thursday, and may test a record high in days ahead after the Swiss National Bank's latest steps to curb franc strength fell short of expectations, and as worries over the euro zone's debt crisis fester.****
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Switzerland's government will unveil a 1.5 billion Swiss franc ($1,9 billion) package to help the country deal with the strong currency when it meets later on Wednesday, a Swiss newspaper reported.
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As the Swiss National Bank (SNB) gets ready to meet on Wednesday, a number of analysts say the central bank has few choices to try and stem the franc's recent rise.
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The euro struggled to make any headway in Asia on Wednesday, having suffered a minor setback on a lack of progress in talk of a common bond, while the Swiss franc stayed under pressure on expectations of imminent action to curb its strength.*
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The Swiss franc hovered near record highs against the dollar and euro in Asia on Tuesday, having surged on the back of a global stock market rout as a crisis of confidence gripped investors.
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Ed Ponsi, Managing Director at Barchetta Capital Management, says the effects of Yen intervention and the increase of Swiss interest rate will not last because there is a tremendous amount of pressure to sell the U.S. dollar.
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