In the wake of Sunday’s NO vote for a new Greek bailout, currency traders flocked to safe haven currencies as uncertainty continued to escalate. The Japanese Yen was the primary beneficiary of the safe haven drive, though the Swiss Franc also saw an increase in demand. Policy makers at the Bank of Japan said that they are going to make every effort to guard against market volatility. The Swiss National Bank’s governing council has continuously forewarned investors that it would take whatever steps it deemed necessary to prevent the Swiss Franc from being pushed higher. For most investors, however, that threat of an intervention by the SNB was enough to limit demand of the Swiss currency.
As reported at 11:24 am (BDT) in London, the USD/JPY had earlier struck a 6-week trough at 121.700 Yen but the pair has since recovered and is currently trading at 122.6950 Yen, a gain of 0.57%. Meanwhile the EUR/JPY was trading at 135.3500 Yen, a gain of 1.05% after falling to a session low of 134.5550 Yen. The EUR/CHF was trading 0.66% higher at 1.0432 Swiss Francs; the pair had earlier struck a session low at 1.0392 Swiss Francs.
Aussie and Kiwi Feel Pressure
With risk appetite suppressed, risk-related currencies are under pressure, including the New Zealand and Australian Dollars. The AUD/USD hit a 6-year low at $0.7452 before edging back to $0.7499 while the NZD/USD was trading lower at $0.6686, down 0.9% in the trading session.