Safe-haven trades are back in play amid growing concern about Greece’s future—and one currency that’s likely to benefit the most from the turmoil is the Swiss franc, according to analysts.
The euro hit a three-week low against the Swiss franc and a one-month low versus the U.S. dollar on Tuesday, reflecting, in part, fears that Greece’s cash-strapped government will be unable to pay a 300 million euro ($327 million) International Monetary Fund (IMF) loan repayment due next week.
“When stresses get worse the Swiss franc does seem to get inflows and that appears to be the case in recent weeks,” Jane Foley, a senior currency strategist at Rabobank in London, told CNBC on Tuesday. “While Greece has been close to the headlines all of this time, the deadlines coming up now are real make or break deadlines.”
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