Around 6:50 p.m., the Swiss currency was trading at 1.0430 francs for one euro, following the currency pair had hit a new low the previous day at 1.0273 EUR/CHF.
The franc loosened significantly on Friday evening once morest the euro, the main currency of Swiss trade. However, the Swiss currency remained in the crosshairs of investors because of its role as a safe haven in the context of the invasion of Ukraine by Russia.
Around 6:50 p.m., the Swiss currency was trading at 1.0430 francs for one euro, following the currency pair had hit a new low the previous day at 1.0273 EUR/CHF.
Against the dollar, the franc also eased and traded at 0.9278 USD/CHF. The day before, the currency pair was still trading at 0.9176 USD/CHF.
“What is happening in Ukraine is a ‘black swan’ (extremely rare and damaging events), this is the worst-case scenario among the worst-case scenarios drawn up in recent months,” warned Ipek Ozkardeskaya, an analyst at Swissquote, regarding of the Russian military attack on Ukraine.
“The US dollar, together with the yen and the Swiss franc, fulfilling their role as a safe haven and gaining ground on riskier currencies, in which we must, in this case, include the euro”, commented Ricardo Evangelista d ‘Activtrades.
For UBS specialists, “the worsening of the crisis in Ukraine has caused a broad movement of risk aversion”. “Many traditional ‘safe havens’ have done well. This is particularly the case for US Treasury bonds, the yen, the Swiss franc and gold,” they detailed in a comment.
But for analysts at the bank with the three keys, “the Swiss franc seems to us (…) to provide sub-optimal coverage due to its exposure to the European economy, which might suffer in the event of a disruption in supply. energy”. But in the immediate term, volatility is likely to remain high and a further decline in global markets cannot be ruled out.