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U.S. Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. Deutsche Bank's CVIX (.DBCVIX) - the currency market's version of Wall St's "fear index" of stock volatility and a weighted average of implied "vol" in nine major pairings - has basically imploded. By driving short-term dollar cash rates and U.S. bond yields higher over the past 20 months, the Fed basically sucked cash from the wider investment world and supercharged dollar exchange rates everywhere. Now that it looks done, the buck's finally on the back foot - plumbing levels not seen since August. With implied volatility directionally biased, the dollar index and the CVIX are typically well correlated and both peaked in tandem in same month of September last year.

Persons: Dado Ruvic, Deutsche Bank's, Chris Turner, Francesco Pesole, BOJ, BOE, Marcelli, Morgan Stanley, Matthew Hornbach, David Evans Organizations: REUTERS, Deutsche, U.S, ING, Graphics Reuters, Reuters, Bank of Japan, European Central Bank and Bank of England, ECB, UBS Global Wealth, Treasury, Thomson Locations: Ukraine, U.S . Federal, Japan, U.S

☆ Dollar steady against euro, yen on intervention watch as it hits one-week low
▼ + stars: | 2023-11-08 | by ( Karen Brettell | ) www.reuters.com time to read: +4 min

[1/2] U.S. Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. Traders also remained on alert for potential intervention in the Japanese currency as it rose above the 151 level against the dollar, its weakest level in a week. “The dollar is vulnerable to weaker data going forward," said Shaun Osborne, chief foreign exchange strategist at Scotiabank in Toronto. "We’re transitioning to a sort of sell dollar rallies environment, after the buy dollar dips trend that we’ve seen really since the middle of the year." The dollar gained 0.41% to 151.03 Japanese yen , heading back towards levels that have investors on watch for currency intervention.

Persons: Dado Ruvic, Shaun Osborne, ”, Osborne, Jerome Powell, Powell, Nick Bennenbroek, Francesco Pesole, Karen Brettell, Gertrude Chavez, Dreyfuss, Samuel Indyk, Andrea Ricci Organizations: REUTERS, Federal Reserve, Scotiabank, U.S, ING, Reserve Bank of Australia, Thomson Locations: U.S, United States, Toronto

☆ Dollar rises for third day before Fed Chair Powell speech
▼ + stars: | 2023-11-08 | by ( Samuel Indyk | ) www.reuters.com time to read: +4 min

"The data side has been very quiet so the main drivers have been the hawkish comments from Fed speakers," said ING FX strategist Francesco Pesole. Focus now turns to remarks from Fed Chair Powell later on Wednesday. DARKENING GROWTH OUTLOOKThe euro fell 0.3% to $1.0670, further weighed by a darkening growth outlook in the euro zone. "The mixed outlook for consumer and investment spending leaves the euro zone very close to recession," said Wells Fargo economist Nick Bennenbroek. "Regardless of whether the euro zone falls into recession, we see enough growth headwinds to suggest that the European Central Bank's monetary tightening is done."

Persons: Dado Ruvic, Jerome Powell, Francesco Pesole, They've, Powell, Matt Simpson, Wells, Nick Bennenbroek, ING's Pesole, Luci Ellis, Samuel Indyk, Rae Wee, Lincoln, Christina Fincher, Alex Richardson Organizations: REUTERS, Reserve, U.S, ING, Central, Reserve Bank of Australia, Thomson

☆ Sterling rises after best week in a year as dollar slide continues
▼ + stars: | 2023-11-06 | by ( Harry Robertson | ) www.reuters.com time to read: +2 min

UK pound coins plunge into water coloured with the European Union flag colours in this illustration picture, October 26, 2017. REUTERS/Dado Ruvic/File Photo Acquire Licensing RightsLONDON, Nov 6 (Reuters) - The pound rose on Monday, extending the previous week's rally, as a slide in U.S. bond yields continued to weigh on the dollar. Sterling was last up 0.23% at $1.2409, trading at its highest in more than a month after posting its best weekly performance in a year last week with a rise of 2.1%. The Bank of England also held interest rates, at a 15-year high of 5.25%, last week as it painted a gloomy picture of the UK economy. Gross domestic product data, due on Friday, is expected to show the UK economy shrank 0.1% in the third quarter after growing 0.2% in the three months to June.

Persons: Dado, Sterling, Francesco Pesole, Harry Robertson, Kirsten Donovan Organizations: European Union, REUTERS, U.S, Federal Reserve, ING, Graphics Sterling, Financial, Bank of, Gross, Thomson Locations: U.S, American, Bank of England

Enter the Swiss franc, a longstanding safe haven asset that just hit its highest level against the euro since 2015 , standing tall as its traditional rivals lose appeal. Other than U.S. dollar cash, only the Swiss franc and gold remained as options, Ielpo said. The Swiss franc has rallied over 3% against the yen this month. Reuters GraphicsUNCERTAIN WORLDSince the Oct.7 Hamas attacks in Israel, the Swiss franc -- also referred to as the Swissie -- has rallied roughly 2% against the dollar. "The war in the Middle East clearly has lead to a flight to safety that benefited the Swiss franc," said Karsten Junius, an economist at J.Safra Sarasin in Zurich.

Persons: Morgan Stanley, Florian Ielpo, Ielpo, Jeremy Stretch, Karsten Junius, Francesco Pesole, J.Safra Sarassin's Junius, Luca Paolini, Paolini, Treasuries, Toby Gibb, Naomi Rovnick, Alun John, John Revill, Amanda Cooper, Dhara, Dhara Ranasinghe, Tomasz Janowski Organizations: Swiss, Nestle, Wall, Lombard, U.S, Swiss National Bank, Traders, Ministry of Finance, CIBC Capital Markets, Reuters, ING, Management, Artemis, Thomson Locations: ZURICH, Israel, Geneva, Japan, Zurich, Swiss, U.S, London

☆ Sterling at weakest vs euro in five months as retail sales weigh
▼ + stars: | 2023-10-20 | by ( ) www.reuters.com time to read: +2 min

LONDON, Oct 20 (Reuters) - The pound was at its weakest against the euro in five months on Friday and was also under pressure versus the dollar as weak retail sales data reinforced fears about the health of the British economy. The euro climbed as far as 87.40 pence, its highest since May, with the European common currency also set for its best week against the pound in a month. Friday's moves were also driven by data that showed British retail sales fell more than expected in September, against a backdrop of broader cost of living pressures that could see the economy shrink overall in the third quarter. Weak retail sales and a noticeable drop in consumer confidence, though both are among the most volatile UK data releases," said Francesco Pesole, FX strategist at ING in a morning note. The pound has also been suffering against safe haven currencies and is trading at 1.0819 Swiss francs, its weakest since September 2022.

Persons: Francesco Pesole, Kirsten Donovan Organizations: National Statistics, ING, Thomson

A strong dollar typically weighs on oil prices as it makes the commodity more expensive for holders of other currencies, dampening demand for crude. Oil prices in September hit 10-month highs as Saudi Arabia and Russia cut a combined 1.3 million barrels per day (bpd) of supply until the end of the year. Oil prices are currently high in part in response to the OPEC+ cuts. This supply shock is expected to dampen consumer purchasing power, weigh on economic growth and eventually depress oil demand, JP Morgan analysts said. And given high interest rates in key Western economies, the combination of relatively high oil prices and the strong dollar cannot last for a long time, said Saxobank analyst Ole Hansen.

Persons: Dado Ruvic, Brent, Colin Asher, Francesco Pesole, Morgan, Ole Hansen, Tamas Varga, PVM, Simon Webb, Sharon Singleton Organizations: REUTERS, U.S ., Reuters Graphics Reuters, U.S, Mizuho, U.S . Federal Reserve, ING, Reuters, Thomson Locations: Saudi Arabia, OPEC, Russia, Israel, Palestinian

[1/2] Dollar banknotes are seen under Euro saving money box in this picture illustration taken February 16, 2017. The European common currency was last down 0.16% at $1.0533, a touch above Tuesday's 10-month low of $1.0448 but still set for a further weekly decline of 0.2% making that streak the longest since its launch in 1999. The dollar's recent strength has been underpinned by a rapid sell-off in U.S. government bonds, which sent yields to multi-year highs. "The pause in the bond sell-off is granting some room for recovery for most currencies against the dollar. The Australian dollar was steady at $0.6364, but set for a 1% weekly decline.

Persons: Dado Ruvic, Francesco Pesole, Vishnu Varathan, Rae Wee, Alun John, Shri Navaratnam Organizations: REUTERS, Rights, ING, Bank of Japan, Ministry of Finance, Mizuho Bank, Swiss, Thomson Locations: Rights SINGAPORE, LONDON, U.S, United States, Singapore, London, Lincoln

Yet increasingly, euro area specific factors, particularly exposure to higher oil prices, risk further weakness in an already stagnating economy, and the single currency. The euro is especially vulnerable to rising oil prices, with net imports accounting for over 90% of oil products available in the European Union. "High oil prices are weighing on the euro area's terms of trade, and if oil prices move above $100 per barrel to $110 per barrel we think it will be difficult for the euro to avoid parity," said Nomura's G10 FX strategist Jordan Rochester. But it also lifts price pressures through higher import costs, compounding the impact from higher oil prices. "Definitely the euro zone is not in a good place right now," said Moec, adding that he did not rule out a euro move to parity.

Persons: Dado Ruvic, Jordan, Nomura, Morgan Stanley, Jens Eisenschmidt, Francesco Pesole, Athanasios, Gilles Moec, Dhara Ranasinghe, Alun John, Yoruk, Christina Fincher Organizations: U.S, REUTERS, European Union, OPEC, Barclays, European Central Bank, ECB, ING, Germany, Bank of America, AXA Investment, Thomson Locations: Jordan Rochester, United States, ITALY, Italy, U.S, London, Amsterdam

Japanese yen and U.S. dollar banknotes are seen with a currency exchange rate graph in this illustration picture taken June 16, 2022. The greenback tumbled ahead of U.S. inflation data due on Wednesday, with traders on the lookout for whether the world's largest economy is indeed on track for a "soft landing", and whether the Federal Reserve has further to go in raising rates. "It seems that Ueda's comments were intended to stop the yen's slide against the dollar," said Takehiko Masuzawa, trading head at Phillip Securities Japan. DOLLAR SLIDEThe dollar index , which measures the U.S. currency against peers including the yen, was last down 0.26% to 104.59, near an almost one-week low. It was last nearly 0.8% higher at 7.2895 per dollar, while its offshore counterpart similarly was up about 0.9% to 7.3003 per dollar.

Persons: Florence Lo, Kazuo Ueda stoked, Ueda, Takehiko, Francesco Pesole, Matt Simpson, Rae Wee, Junko Fujita, Joice Alves, Jason Neely Organizations: U.S, REUTERS, Rights, Bank of Japan, Federal Reserve, Yomiuri, Phillip Securities Japan, Treasury, ING, Aussie, New Zealand, Thomson Locations: Rights SINGAPORE, LONDON, Japan, United States, Singapore, Tokyo, London

☆ Safe-haven dollar hovers around 2-month high on China woes, high rates fear
▼ + stars: | 2023-08-18 | by ( Joice Alves | ) www.reuters.com time to read: +4 min

U.S. Dollar and Chinese Yuan banknotes are seen in this illustration picture taken June 14, 2022. "High yields and growing risks in China suggests the balance of risks is moderately tilted to the upside for the dollar," he added. The U.S. dollar index , which measures the currency against six peers, edged 0.1% higher at 103.53, after touching a two-month high at 103.59 on Thursday. ING'S Pesole said the single currency has been surprisingly resilient given the euro zone’s economic exposure to China. Against the yen, the dollar eased 0.3% to 145.38 , after reaching a nine-month peak of 146.56 on Thursday.

Persons: Florence Lo, Francesco Pesole, ING'S Pesole, Joice Alves, Kevin Buckland, Sharon Singleton Organizations: REUTERS, People's Bank of China, Reuters, China, HK, U.S, ING, Federal, Thomson Locations: Thursday's, U.S, Beijing, China, London, Tokyo

☆ Dollar set for fourth week of gains, climbs back towards 145 yen
▼ + stars: | 2023-08-11 | by ( Amanda Cooper | ) www.reuters.com time to read: +3 min

Japanese yen and U.S. dollar banknotes are seen with a currency exchange rate graph in this illustration picture taken June 16, 2022. "You should expect the rhetoric once yen gets to 145," said Bank of Singapore currency strategist Moh Siong Sim. Japan intervened in currency markets last September when the dollar rose past 145 yen, which prompted the Ministry of Finance to buy the yen and push the pair back to around 140 yen. Prior to the inflation data, that chance was already above 85%. ,The Australian dollar rose 0.12% to $0.652.

Persons: Florence Lo, Moh Siong Sim, Francesco Pesole, Ankur Banerjee, Alun John, David Evans, Kirsten Donovan Organizations: U.S, REUTERS, Federal, Bank of Japan, Singapore, Ministry of Finance, ING, Swiss, Thomson Locations: Japan, Washington, Frankfurt, Beijing, Singapore, London

☆ Dollar’s decline throws spotlight on battered commodity currencies
▼ + stars: | 2023-07-26 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +5 min

While that's driven rallies in risk assets such as stocks, raw materials prices and some commodity currencies have been slower to respond. Reuters GraphicsThe bullish view on commodity currencies gained traction in recent days after leaders in China - the world’s leading commodity consumer - on Monday pledged to step up policy support for the economy. Prices for oil, copper and other raw materials rose on the news, while commodity currencies such as the Australian and New Zealand dollars edged up. Some other commodity currencies have seen similar declines, with the New Zealand dollar down 2% and the South African rand down 3%. Commodity currencies are far from the only way to play further dollar weakness.

Persons: there's, Francesco Pesole, Brent, Thanos Bardas, Neuberger Berman, Bardas, Bipan Rai, Jane Foley, Saqib Iqbal Ahmed, Ira Iosebashvili, Leslie Adler Organizations: YORK, Reserve, ING Bank, Australian, Reuters, New, U.S, New Zealand, Deutsche Bank, International Monetary Fund, Bank of Japan, U.S ., CIBC, Rabobank, Thomson Locations: Norway, Australia, U.S, Norwegian, China, North America, Sweden

☆ Dollar decline slows as investors wait on Fed
▼ + stars: | 2023-07-17 | by ( Karen Brettell | ) www.reuters.com time to read: +3 min

This week is likely to see the dollar consolidate as investors wait on the Federal Reserve’s meeting next week, when the U.S. central bank is expected to hike rates by an additional 25 basis points. The pace of last week’s dollar decline “seemed unusually large,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York, noting that the market should steady and see a firmer dollar this week. Fed funds futures traders are pricing in an additional 32 basis points of tightening with the benchmark rate expected to peak at 5.40% in November. The dollar index was last down 0.12% at 99.832, after falling to 99.574 on Friday, the lowest since April 2022. The dollar dipped 0.07% against the Japanese yen to 138.65, after dropping to 137.245 on Friday, the lowest since May 17.

Persons: ”, Marc Chandler, Francesco Pesole, Bundesbank, Joice Alves, David Holmes, Andrea Ricci Organizations: YORK, Federal, Bannockburn Global, Treasury, ING, International Monetary Fund, European Central Bank, Thomson Locations: U.S, Bannockburn, New York, Germany, London

Versus the yen the dollar fell 0.28% to 138.36 yen per dollar, after touching its lowest against the Japanese currency in two months on Friday. ,"The FX market is front running possible normalisation of Fed policy in 2024," said Chris Weston, head of research at broker Pepperstone in Melbourne. "The question then is whether the dollar sell-off has gone too far and we are at risk of mean reversion early this week." The Swedish and Norwegian crowns continued to climb after making gains of more than 5% on the dollar last week. The Swedish crown rose 0.2% to 10.2360 against the dollar, the Norwegian crown rose instead 0.4% to 10.0160.

Persons: Francesco Pesole, Chris Weston, Carol Kong, Sharp, Joice Alves, Tom Westbrook, Angus MacSwan, Andrew Heavens Organizations: ING, Federal Reserve, Fed, European Central Bank, Pepperstone, U.S, New Zealand, Commonwealth Bank of Australia, dovish Bank of, Thomson Locations: SYDNEY, U.S, Germany, Europe, Melbourne, dovish Bank of Japan, Norwegian, London, Sydney

Finance Minister Shunichi Suzuki said on Tuesday: "We will closely watch currency market moves with a strong sense of urgency and will respond appropriately if the moves become excessive." Japan intervened to boost the yen last year when it weakened past the 145 per dollar level. "Euro-dollar is a bit stronger this morning, we had probably a bit of help from hawkish ECB (European Central Bank) comments this morning," said ING's Pesole. Latvian central bank governor and ECB official Martins Kazaks said in Portugal on Tuesday that the central bank will likely keep hiking interest rates after July. China's central bank set its daily yuan fixing stronger than market expectations for a second day in a row on Tuesday.

Persons: paring, Shunichi Suzuki, Francesco Pesole, ING's Pesole, Martins Kazaks, Kazaks, Christine Lagarde, Jerome Powell, Andrew Bailey, Kazuo Ueda, Lagarde, Vladimir Putin, Wagner, Sterling, Harry Robertson, Rocky Swift, Barbara Lewis, Conor Humphries, Chizu Organizations: Central, . Finance, Bank of Japan, ING, hawkish ECB, European Central Bank, ECB, Federal, Bank of England, Wednesday, Thomson Locations: TOKYO, Japan, Sintra, Portugal, Latvian, Russian, China, China's, London, Tokyo

☆ Oil holds steady ahead of Powell's congressional testimony
▼ + stars: | 2023-06-21 | by ( Rowena Edwards | ) www.reuters.com time to read: +2 min

LONDON, June 21 (Reuters) - Oil prices stabilised on Wednesday ahead of Federal Reserve Chair Jerome Powell's congressional testimony later in the day and as data showing British inflation remained sticky raised the possibility of a hawkish Bank of England policy decision this week. The main market focus is on Fed officials due to speak later in the day, with Chair Powell's congressional testimony on the economy on Wednesday and Thursday the highlight. However, should Powell prompt a hawkish return of rate cut expectations, the U.S. dollar could see some support, ING strategist Francesco Pesole said in a note. A stronger U.S. dollar is bearish for oil as it makes commodities more expensive for holders of other currencies. Oil prices drew some support from a possible drawdown in U.S. crude stocks, with Reuters poll among five analysts estimating that crude stockpiles fell by about 400,000 barrels on average in the week to June 16.

Persons: Jerome, Brent, Craig Erlam, Powell, Francesco Pesole, Rowena Edwards, Katya Golubkova, Trixie Yap, Emelia Sithole, Louise Heavens Organizations: Federal, hawkish Bank of, . West Texas, Bank of England, U.S, ING, Reuters, American Petroleum Institute, Energy, Administration, Thomson Locations: bank's Washington, U.S, Tokyo, Singapore

☆ Dollar backs down as traders price in a Fed skip
▼ + stars: | 2023-06-14 | by ( Amanda Cooper | ) www.reuters.com time to read: +3 min

In April, the U.S. consumer price index (CPI) logged its smallest year-on-year increase since March 2021 at 4.0%. It's quite a high hurdle for (the Fed) to deliver a hawkish surprise tonight through rhetoric alone," MUFG strategist Lee Hardman said. Unsurprisingly, the dollar has lost the most so far this month against the Australian dollar , which has gained 4.3%, followed by the Canadian dollar , which has risen by 2%. The European Central Bank (ECB) delivers its decision on rates on Thursday, with a quarter-point hike to 3.50% widely expected. Its policymakers have been clear that inflation across the euro zone is too high and the central bank has more work to do.

Persons: Lee Hardman, Francesco Pesole, Sterling, Kevin Buckland, Kim Coghill, Mark Potter, Chizu Organizations: Federal Reserve, Reserve Bank of Australia, Bank of Canada, Bank of England, Canadian, European Central Bank, Fed, ECB, ING, The Bank of, People's Bank, Thomson Locations: U.S, The Bank of Japan, Tokyo

☆ Debt ceiling hopes lift dollar to seven-week peak
▼ + stars: | 2023-05-18 | by ( Samuel Indyk | ) www.reuters.com time to read: +3 min

SINGAPORE, May 18 (Reuters) - The U.S. dollar hit a seven-week peak on Thursday after President Joe Biden and top U.S. congressional Republican Kevin McCarthy worked towards avoiding a damaging debt default, while investors scaled back Federal Reserve easing expectations. Biden and McCarthy on Wednesday underscored their determination to strike a deal soon to raise the government's $31.4 trillion debt ceiling, having agreed a day earlier to negotiate directly after a months-long standoff. "In the short-term, the debt ceiling is win-win for the dollar," said Viraj Patel, global macro strategist at Vanda Research. "If it gets worse, you're going to see a global hard landing and you will want to be owning dollars. Traders are pricing in around a 20% chance that the Federal Reserve raises its interest rate at its June meeting.

Biden and McCarthy on Wednesday underscored their determination to strike a deal soon to raise the government's $31.4 trillion debt ceiling, having agreed a day earlier to negotiate directly after a months-long standoff. "In the short-term, the debt ceiling is win-win for the dollar," said Viraj Patel, global macro strategist at Vanda Research. Traders are pricing in around a 20% chance that the Federal Reserve raises its interest rate at its June meeting. The dollar index firmed 0.2% to 103.08, near Wednesday's seven-week peak of 103.12. Elsewhere, the dollar rose to a ten-week high of 137.89 yen , extending Wednesday's nearly 1% gain against the Japanese currency.

☆ Sterling falls as cracks appear in Britain's job market
▼ + stars: | 2023-05-16 | by ( ) www.reuters.com time to read: +2 min

Sterling fell by as much as 0.52% against the dollar to a session low of $1.2466, and by as much as 0.4% against the euro . Right now, the derivatives market shows traders believe UK rates will peak at 4.80% in November, down from 4.86% a day ago. Tuesday's data showed pay growth - which is at the heart of the BoE's debate about whether to raise interest rates further - remained strong by historical standards. That said, with inflation at 10.1%, pay growth in real terms is still deeply negative and close to its weakest in years. Markets are attaching a 68% chance that the BoE will raise rates by a quarter of a point to 4.75% and a 32% chance of no change.

☆ Sterling eases against dollar; inflation keeps pressure on BoE
▼ + stars: | 2023-04-19 | by ( ) www.reuters.com time to read: +2 min

[1/2] British pound banknote is displayed on U.S. Dollar banknotes in this illustration taken, February 14, 2022. REUTERS/Dado Ruvic/IllustrationLONDON, April 19 - Sterling eased on Wednesday as a higher dollar wiped out earlier gains made after data showed Britain has the highest inflation in western Europe, cementing market expectations for a rate hike at the Bank of England's meeting in May. The inflation data initially sent sterling as much as 0.8% higher against the dollar. On Tuesday data showed British wages rose faster than anticipated last month, further supporting more hikes by the BoE. The market is currently pricing in a 99% chance of a 25 bp rate hike from the Bank of England at its next meeting. .

☆ Britain’s pound is beating every other major currency this year
▼ + stars: | 2023-04-04 | by ( Julia Horowitz | ) edition.cnn.com time to read: +3 min

The pound, which has advanced about 3.3% versus the greenback since the start of 2023, is the best-performing currency among developed economies this year. The UK currency has been boosted by indications the country’s economy is holding up better than expected. The International Monetary Fund predicted in January that the UK economy would contract by 0.6% this year, while all other advanced economies would grow, if only slightly. “There was a lot of pessimism being priced into the pound,” said Francesco Pesole, a currency strategist at ING. “There was a big re-rating of growth expectations around Europe, and that impacted the UK,” Pesole said.

☆ Sterling ticks higher against dollar as focus stays on rate outlook
▼ + stars: | 2023-04-03 | by ( ) www.reuters.com time to read: +2 min

LONDON, April 3 - Sterling ticked higher against the dollar on Monday, with market moves largely driven by news of a surprise announcement from OPEC+ of more production cuts which sent the price of oil and the dollar sharply higher earlier in the session. By 1030 GMT the pound was up 0.18% against the dollar which trimmed gains, at $1.2352. "The impact overnight in the Asian session was one of higher oil after the OPEC cuts, meaning lower chances of rate cuts by the Fed and so a higher dollar. With little in the way of UK-specific data this week, attention is staying on the Bank of England's rate outlook and the UK's economic outlook. British inflation is around 10.4% - over five times the Bank of England's target rate of 2% and the highest among the Group of Seven rich nations.

☆ Swiss franc grapples with safe-haven identity crisis after Credit Suisse
▼ + stars: | 2023-03-24 | by ( Samuel Indyk | ) www.reuters.com time to read: +5 min

Money managers ditched the Swiss franc at the fastest rate in two years last week in the run-up to the dramatic takeover of Credit Suisse (CSGN.S) by UBS (UBSG.S). "You still have some of the safe-haven hedging properties in the Swiss franc but it can only take so much when the risk ends up being so concentrated in the Swiss economy and the Swiss financial sector," Kundby-Nielsen added. "If it hadn't been Credit Suisse, but any other European bank getting into trouble, you would have seen the Swiss franc rising sharply because it would have been the safe haven for European risk," said Francesco Pesole, FX strategist at ING. "The franc is not an 'all-weather' safe haven and so far we've not had the type of market pressures that would typically lead to franc appreciation," he said. SWISSIt's one thing for the franc to have lost some favour among investors during a Swiss-centric crisis, but quite another to suggest its days as a safe haven are numbered.

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