The Swiss franc surged to a 14-year high against the U.S. dollar in Asian trading Friday, extending its weekly rally as investors flocked to traditional safe-haven assets amid escalating global trade tensions. The franc’s exceptional strength – poised for its largest weekly gain since 2022 – reflects deepening market anxiety about President Trump’s aggressive trade measures, which have eroded confidence in dollar-denominated assets.
This flight to safety has been particularly pronounced in Asian trading sessions, where the franc has outperformed even other haven currencies like the yen. Market participants are increasingly concerned that Trump’s protectionist policies could trigger retaliatory measures from trading partners, potentially destabilizing global financial markets. The franc’s relentless appreciation suggests traders are positioning for prolonged volatility, with the currency breaking through key technical resistance levels.
The Swiss National Bank faces mounting challenges as the franc’s strength approaches extreme levels, potentially threatening Switzerland’s export-driven economy. While the central bank has historically intervened to curb excessive appreciation, current market dynamics driven by geopolitical risks may limit its ability to effectively counter this safe-haven rally. Traders are now watching for any signs of official pushback against the franc’s meteoric rise.
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