Forex

Swiss franc inched down against the dollar as the tension between U.S. and North Korea continues to rise

Swiss Franc

The Swiss franc was marginally lower against the U.S. dollar on Thursday. However the currency still managed to held on to its gains in the previous session. Investors are currently relying on save haven assets due to the rising tension across the Korean Strait.

Sumitomo Mitsui Banking Corporation’s global market analyst Satoshi Okagawa said that uncertainties on geopolitical risks are leading investors to pare back their bets on the Yen/Swiss franc and the tension between U.S. and North Korea seems like a good excuse to adjust positions.

These two currencies are frequently sought in times of political turmoil’s because both are currently big on account surpluses. There are assumptions that Japanese investors are likely to repatriate send their foreign holdings back to their country in times of rising geopolitical uncertainties, given that Japan is the biggest creditor in the world.

In contrast to that, the yen inched down versus the dollar as it lost momentum after rising to its best level in eight weeks last Wednesday. The greenback edged up by 0.1 percent to 110.16 yen.

On the Swiss franc’s performance versus other peers; it eased by 0.1 percent against the U.S. dollar at 0.9645 a dollar after a 1.1 percent jump on the previous day. The Swiss franc was also higher versus the euro by 1 percent on Wednesday. This is its highest jump against the common currency since the Swiss National Bank disregarded its cap on the Swiss franc last January 2015. It previously stood at 1.1332 a euro.

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