Yen and Swiss franc attract safe haven investment

Published: 27 Aug at 12 PM Tags: Euro, Dollar,

The Swiss franc and yen have risen against a basket of currencies as tensions between the West and Syria escalate. Investors are looking to safe havens which means riskier currencies like the Australian dollar have come under pressure. The US dollar is down 0.3 per cent against the yen to 98.15 yen, a drop from the 99.15 yen recorded at the end of last week.

The dollar also fell 0.2 per cent against the Swiss franc and is currently trading at 0.9210 francs. The euro also dropped 0.25 per cent against the Swiss currency to hit 1.2313 francs.

Safe haven bids because of the Syrian issue saw the Australian and New Zealand dollars fall against the yen. The Aussie lost 0.9 per cent against its US rival to end at $0.8955. The growth-linked currency also shed 1 per cent against the yen to hit 87.90 yen. The Kiwi fell 1 per cent to end at 76.56 yen.

It is believed in Washington that Bashar al-Assad, the Syrian President, authorised the use of chemical weapons on civilians last week, something that was described as a moral obscenity by John Kerry, US Secretary of State.

The euro was little changed against the dollar at $1.3372 but dropped 0.3 per cent against the yen to 131.25 as all eyes turn to Syria.