Swiss franc gains as euro hits all-time low
The Swiss franc continues to be sought out as a safe haven in the wake of the worsening situation in the Middle East. It has gained significantly in value. The euro hit a new all-time low against the franc of 0.9449 on Wednesday afternoon.
This was below the previous low of last Friday. While the US dollar as a world reserve currency was also in stronger demand and gained against most currencies, it also weakened somewhat against the franc on Wednesday. Thus, the US currency slipped below the mark of 90 centimes already in the morning and was traded in the early evening at 0.8980 francs.
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Meanwhile, it dropped on the stock exchanges worldwide. The leading index of the Swiss stock exchange SMI dipped by 1.%. Germany’s DAX slipped 1%, while the London Stock Exchange lost 1.2%. The US stock markets were also in the red.
As is so often the case in uncertain times, gold also gained in value. In the afternoon, a troy ounce (about 31.1 grammes) cost up to $1,962 (CHF1,858) on the London Stock Exchange. That was about $39 more than the previous day. The last time the gold price was higher was at the beginning of August.
On the financial markets the uncertainty is large because of the situation in the Middle East.
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