Currency

Swiss Franc Up 36% Against the Dollar in a Year

A quick check of Oanda this morning shows that the Swiss franc is worth 35 more cents than it was a year ago at this time — an increase of 36 percent.

Every other major currency one can think of — yen, euro, Australian dollar, Singapore dollar, Canadian dollar, Brazilian real — is also standing much higher compared to the greenback than it was on August 9, 2010.

The franc’s rise, while significant, still pales in comparison to precious metals. Palladium is up 44 percent, gold 87 and silver, despite its ups and downs, has more than doubled in the last 365 days.

Update: The CHF is already up 2.35 cents today against the USD in early morning trading.

How Can I Get Paid in Swiss Francs?

If only I had taken that job as King of Switzerland. I would be now be getting paid in the paper currency that seems to hold the most value these days.

The power of the Swiss franc is so great that it has managed to hold an entire nations — nations which are not called Switzerland — under its spell.

In Hungary, for example, where, for some mysterious reason, the majority of home loans in the Noughties were made out in CHF, great swings in the Swiss currency garner more coverage in the Hungarian press than they do in Switzerland — particularly when the franc is heading upwards, which seems to be the only direction it has been headed recently.

Update: Just as these lines are being typed, the Swiss National Bank has decided to take measures to weaken the franc.

Typical End of the Month Dollar Decline Against Euro Doesn’t Happen

For a time last week it appeared the dollar was headed for another end of the month drop against the euro — as has been the case the last seven months.

But no, thanks to a desperate last-minute Congressional agreement to keep the US from defaulting, and the apparent failure of the agreement to convince the markets, the dollar stands higher today than it did a week ago when compared to the euro. Compared the Swiss franc, though …

The USD against the EUR in the last week of the month starting in December 2010

December 27, 2010 0.7618
January 3, 2011 0.7473

January 25, 2011 0.7348
February 1, 2011 0.7330

February 22, 2011 0.7309
March 1, 2011 0.7254

March 25, 2011 0.7080
April 1, 2011 0.7057

April 25, 2011 0.6865
May 1, 2011 0.6751

May 25, 2011 0.7107
May 31, 2011 0.6941

June 24, 2011 0.7016
July 1, 2011 0.69022

July 25, 2011 0.69604
August 1, 2011 0.7020 (latest figure)

Sources: Oanda.com, Yahoo Finance

It’d Be Goodbye Greenback Without Greece

The Telegraph’s Ambrose Evans-Pitchard made a point yesterday that we who only follow the big-name currencies tend to overlook: the dollar appears to be faring much better than it really is because of the instability in the eurozone.

The reality is that the USD has been plummeting for some time against Swiss franc, Aussie dollar, Brazilian real and the Canadian loonie. Were a member of the PIIGS to leave the eurozone, Evans-Pitchard writes, then the common currency could fly anywhere to 1.65 to 1.83 against the American dollar.