Safe-Haven Rush Spurs Swiss Franc Surge

As stock selloffs rock global markets, investors seek refuge in the Swiss franc, pushing it to new heights against the euro. Market fluctuations are influenced by the Federal Reserve's potential interest rate decisions, UK budget plans, and global currency movements. The dollar and yen also see shifts amid economic uncertainties.

Currency markets faced turbulence on Friday as a stock selloff prompted investors to flock to the safe-haven Swiss franc, propelling it to its strongest level against the euro since 2015. Concurrently, the British pound stumbled following reports that the UK budget will avoid increasing income tax rates.

The turmoil was triggered by waning expectations of a Federal Reserve rate cut in December. On Thursday, Fed officials expressed caution, highlighting inflation concerns and relative stability in the U.S. labor market. Investors now see over a 50% chance for a minor rate cut in December, with January odds more favorably priced, sparking asset selloffs.

The Swiss franc's ascent saw the euro dip nearly 0.5% to its lowest against the franc since 2015. The dollar also dropped 0.4% against the franc, and while the Japanese yen—another safe-haven—gained ground, the dollar remained relatively stable. Meanwhile, UK political shifts affected the pound, and Asian currency markets experienced volatility due to intervention efforts.

(With inputs from agencies.)