Global Markets React: Swiss Franc Surges as Investors Seek Safe Havens Amid Stock Selloff

The Swiss franc rose on Friday as market volatility drove investors to safer assets. The pound weakened amid UK tax policy concerns. Fed officials moderated expectations for rate cuts, affecting the dollar. Economic data delays due to the U.S. shutdown added to market uncertainty.

The Swiss franc experienced a notable surge on Friday as investors sought refuge in safer assets amid a global stock market selloff. This movement was accompanied by a downturn in the British pound, following reports that the UK budget would not include previously anticipated income tax hikes.

Expectations for the Federal Reserve to hold rates steady in December have further restrained risk appetite. Fed officials, echoing concerns about inflation, hinted at caution against further easing. This sentiment was reiterated by comments from Kansas City Fed President Jeffrey Schmid, who expressed apprehensions about persistent inflationary pressures beyond tariff-related impacts.

Adding to market uncertainty, U.S. economic reports delayed by the federal government shutdown are expected to reveal gaps for October, impacting sentiment. The U.S. Commerce Department is updating its data release schedule post-shutdown. A weakened labor market could influence further dollar depreciation, amid ongoing position adjustments in response to shifting economic indicators.

(With inputs from agencies.)