Potential intervention of the Japanese yen has driven currency
traders to another safe-haven currency: the Swiss franc exchange
traded fund (
The Swiss franc has appreciated to a record high against the
U.S. dollar, gaining against the greenback for the sixth day in a
row on a pessimistic outlook for the U.S. economy,
reports Stephen Morris for Bloomberg
. Currency traders like the franc in times of financial and
economic uncertainty since the Swiss economy is viewed as stable. [
Switzerland ETFs Buck Europe's Trend.
The Swiss National Bank had sold francs last year to ward off
deflation and boost exports, but in this June, the Central Bank
will end the policy after the fear of deflation has abated.
Switzerland's economy seems to be weathering its stronger
currency very well. Only a few Swiss companies are hurting as a
result of stronger franc, mostly those in the manufacturing
industry, while some companies have even reported a slightly
writes Catherine Bosely for Reuters
. It may not last for long, however: Switzerland's Central Bank
projects a slowdown of the economy in 2011 as a result of the
strong franc. [
Europe ETFs: Who's Hot, Who's Not.
For more information on the Swiss currency, visit our
Swiss franc category
CurrencyShares Swiss Franc Trust (NYSEArca: FXF)
is up 4.6% in the last month
Read the disclaimer
; Tom Lydon is a board member of Rydex|SGI.
Max Chen contributed to this article.