Swiss Franc Could Benefit from Weak Dollar Policy Concerns
Dow Jones
Aug 24
1351 GMT - The Swiss franc could extend its recent gains against the dollar after the U.S. Treasury's decision to boost buybacks of long-term securities, Morgan Stanley analysts say in a note. "The franc should benefit from renewed focus on U.S. policies perceived as leaning against dollar strength." This year the franc has consistently rallied when weak dollar policy concerns have intensified, they say. The Treasury's larger buybacks could revive such concerns, weakening the dollar against the franc even if yield differentials are stable. With foreign exchange volatility expected to remain subdued, the franc's appreciation should be gradual, they say. The dollar rises 0.1% to 0.8020 francs after reaching a two-month low of 0.7947 Thursday, LSEG data show.
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