Swiss Franc
Can a Dollar Floor Be Found Soon?
October 22, 2010
Last week was just full of surprises. Monetary policies around the world became more diversified. A tightening interest rate cycle began in China, and ECB officials showed more willingness to scale back unconventional measures. Other central banks, for example those in Canada and Brazil, put rate normalization programs on pause, and a third group including […] More
Strength of Commodity Currencies Belies High Concern about Global Growth
September 10, 2010
Many major currency relationships have been tightly confined lately. The yen got a boost when Chinese officials unhinged the yuan from the dollar in mid-June, even though many weeks passed with China’s currency acting as if it were still pegged to the greenback. With an eye toward diversification, the Chinese have become bigger and steadier […] More
On the Swiss Franc, Deutschmark, and Euro
September 8, 2010
An article by Peter Garnham on page 23 of today’s Financial Times makes the claim that the Swiss franc “is increasingly being viewed as the proxy for the old Deutschmark.” Among all paper currencies in times of trouble, investors prefer francs most as a store of value. Historically speaking, a more accurate portrayal is that […] More
Beware of August
July 30, 2010
The upcoming third anniversary of the financial crisis finds advanced economies deeper in debt, struggling to maintain traction, and without a consensus over policy priorities. Confusion also exists over the next direction of major currencies. The dollar lost value against most currencies during July in a pattern that persisted into the final days of the […] More
Midyear Reality Check of the Currencies
July 2, 2010
At the very least, the dollar is in a pause. During the week that bridged the second and third quarters, the dollar hit its weakest levels against sterling ($1.5231) and the Swiss franc (1.0581 per USD) since early May. The euro posted a high today of $1.2613, its best level since May 21 and 6.2% […] More
Many Governments Want a Weak Currency, But Not All Can Make it Happen
June 18, 2010
The euro experienced its best week in many months but was not alone in advancing against the dollar. The euro’s gain was pretty much matched by the New Zealand and Australian dollars and surpassed by the Swiss franc. The U.S. dollar dropped about 2% against the yen and around 1% against the British and Canadian […] More
Chaotic Currency Conditions Likely to Continue
May 21, 2010
The European debt crisis rolls onward. No enduring solution to the problem exists. Investors for starters want to see Greece, Portugal, and Spain implement very sharp, multiyear programs of deficit reduction and debt containment but would fear the impact on regional growth and would remain dissatisfied if they got their wish. Currencies are only one […] More
European Currencies Still Looking Pricey
May 7, 2010
The European sovereign debt crisis has revealed several truths. Public officials have thrown varying remedies at the problem, and none has reassured investors more than briefly. The crisis involves decision-making mechanisms and long-term prospects, and it cannot be fixed with a lot of money alone. Like the banking crisis of 2007-09, the response of policy-makers […] More
European Fiscal Problems Won’t Fade
April 30, 2010
Currency market trading next week will be dominated by the scramble to rescue Greece. Outside aid for that heavily indebted economy has been misplayed repeatedly by just about everyone involved in negotiations, and the euro has paid a price for that indecision. Investors cannot avoid comparing attempts to rescue Greece from sudden default to the […] More
Significant Currency Movements Overnight
March 24, 2010
Currencies reflect active risk plays. The yen gained 0.9% against the dollar, which otherwise advanced by 1.1% against the euro and Swissy, 0.9% relative to the kiwi, 0.7% against the Australian dollar, 0.6% against sterling and 0.5% versus the Canadian dollar. The euro got as low as $1.3341, weakest since $1.3212 during the first week […] More
