Market Analysis

Image Credit: Reuters

On Monday, the Swiss franc surged to its highest level against the euro in nearly a decade, driven by significant losses in stock markets, fears about U.S. and global economic growth, and ongoing Middle Eastern tensions.

Since the U.S. Federal Reserve maintained interest rates last week, the franc has appreciated approximately 3.5% against the euro. Early on Monday, it reached a peak of 1.0856 euros, the strongest level since January 2015, when the Swiss National Bank (SNB) removed its cap on the euro.

A spokesperson for the SNB refrained from commenting on the franc's recent strength or discussing potential intervention to counter the currency's rise. This year, the SNB has lowered interest rates twice due to concerns that the franc's strength is negatively impacting Swiss manufacturers' export businesses.

Paraphrasing text from "Reuters" all rights reserved by the original author.