Swiss Franc Soars to Decade-High Against Euro Amid Global Tensions

The Swiss franc reached its highest level against the euro in nearly a decade on Monday, driven by substantial losses in stock markets, ongoing concerns over U.S. and global economic growth, and rising tensions in the Middle East. These factors combined to make the safe-haven currency highly attractive to investors.

The franc has appreciated by about 3.5% against the euro since the U.S. Federal Reserve decided to maintain interest rates last week. Early Monday, the franc surged as high as 1.0856 euros, a peak not observed since January 2015, when the Swiss National Bank abandoned its euro cap.

A spokesperson for the SNB declined to comment on the franc's strength or potential interventions in the market. The central bank has slashed interest rates twice this year due to concerns from Swiss manufacturers that the strong currency is exerting pressure on their critical export businesses.

(With inputs from agencies.)