Broad Dollar Rout Sends Havens Like the Franc Higher
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The week of August 17-21 saw major currencies rally broadly against the dollar. Accelerated Canadian inflation lifted the CAD while a cooling Australian labour market complicated the RBA's path, yet it was NZD and AUD that led the charge as Fed cut bets solidified.
Beneath the headline moves, the Swiss franc quietly extended its own gains, reflecting a market environment where dollar weakness is now a cross-asset story rather than an isolated currency pair move.
Elevated oil prices, mounting U.S. debt levels, and a Treasury seemingly tolerant of currency softness are combining to keep haven demand for the franc firm, even as risk-sensitive currencies dominate the headlines.