The Swiss Franc is currently lower against the US Dollar but managed to hold onto the majority of gains made yesterday in the aftermath of elevated political tension between North Korea and the United States. When the rhetoric between the two leaders heated up, investors were scurrying for safe haven currencies, including the Yen and the Swiss Franc, which surged about 1.1% on Wednesday. The Swissie also edged higher against the Euro, recording one of the largest single day rises since the January 2015 removal of the “peg” placed by the Swiss National Bank. Analysts say that the safe haven pairs are likely to continue to be sought out by investors as the tensions escalate.
As reported at 10:58 am (JST) in Tokyo, the USD/CHF was trading at 0.96 Swiss Francs, a gain of 0.17%. The EUR/CHF was up 0.11% and trading at 1.1341 Swiss Francs. The USD/JPY pair was trading at 110.072 Yen, up 0.13%.
Kiwi Dollar Easing After RBNZ
In New Zealand, the Kiwi Dollar edged higher after the central bank there left rates unchanged at the current 1.75%. The governor of the Reserve Bank of New Zealand, Graeme Wheeler, said that he believed the bank’s target inflation rate was still within reach and that a more dovish stance was not yet needed. The NZD/USD was trading at $0.7328, down 0.43%. Earlier, the pair hit a peak of $0.73684 while the session low stands at $0.73190.