Swiss franc, yen gain on risk aversion

The Swiss franc hit a new record high versus the US dollar for the second day in a row on Wednesday as investors backed away from risk on equities declines and a pessimistic forecast on the growth of the US economy from the Federal Reserve

The franc was as high as SFr1.1025 versus the greenback before trading at SFr1.1035 to the dollar in New York in early afternoon trade, while it was up to SFr1.6369 to the euro, where it stayed in afternoon trade in New York.

The continuing economic concerns also helped the yen, which rose to a two-year high against the US dollar and gained against Australian, New Zealand, and South African currencies.

The yen was as high as ¥108.26 to the dollar and was trading at ¥108.5150 in early afternoon trade in New York, while it traded at ¥160.9712 to the euro, at ¥223.6929 to the pound, and at ¥94.4188 to the Australian dollar.

The UK currency weakened after the minutes of the most recent meeting of the Bank of England’s Monetary Policy Committee were released, showing that the two board members who did not vote to hold interest rates steady had instead voted to cut the rate and increasing speculation that the Bank will cut rates soon.

It took $2.0614 to buy a pound in early afternoon trade in New York, while one pound was worth €1.3896.

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