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Swiss franc: traders once bitten, twice shy

Burned by carry trades in that currency, they are reluctant to re-enter market, worried about franc's stability
Thursday, February 19, 2015 - 05:50

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MR JORDAN: The SNB head said he's ready to intervene in currency markets to weaken the franc because its strength creates "headwinds" by making the economy less competitive.

London

WHEN it comes to Swiss franc carry trades, it's a case of once bitten, twice shy.

Switzerland's negative interest rates mean investors are effectively being paid to borrow francs, which they could then use to purchase higher-yielding assets denominated in other currencies.

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