Swiss Franc Rises as Dollar Eases and French-German Yield Spreads Widen
The Swiss franc strengthened Friday as the U.S. dollar weakened on lower interest-rate hike expectations. Investors sought safety in the Swiss currency amid widening yield spreads between French and German government bonds due to mounting French fiscal concerns.
S. interest-rate rises, while investors also moved into the currency as the spread between French and German government bond yields widened. Rising French fiscal concerns have pushed French bond yields higher relative to German debt, supporting demand for the Swiss franc as a haven.