Concerns about the debt crisis in the eurozone today prompted investors in international currency markets to sell euros and seek a safe haven in the Swiss franc.
Thus, the euro against the šwiss franc plunged below the level of 1.25 francs for the first time in history, to 1.2495 francs. However, it strengthened against the dollar to 1.3168 dollars. It also strengthened against the yen, trading at 109.90 yen. The dollar weakened against the Japanese currency, falling to 83.46 yen."The rise of the šwiss franc is seen as a warning sign that the eurozone is facing new difficulties at the beginning of 2011," comments economist Lee Hardman from Bank of Tokyo-Mitsubishi UFJ in London. "The appeal of the franc as a safe haven has been heightened by the escalation of concerns related to the eurozone’s debt problems," he adds. Concerns about the eurozone’s massive indebtedness have flared up again following a warning from the rating agency Moody’s on Tuesday about a possible downgrade for Portugal due to its enormous debt. The rating agency Fitch has also warned that it may soon downgrade Greece after reviewing the state of its public finances. (H)
