Swiss Franc’s Failure to Weaken Shows Demand for Haven, UBS Says

By Justin Carrigan

July 28 (Bloomberg) -- The Swiss franc’s failure to decline is a signal that demand for a refuge in the currency markets remains buoyant, according to UBS AG.

“The behaviour of the franc is worth watching,” a team of UBS analysts led by Zurich-based chief currency strategist Mansoor Mohi-uddin wrote in a note yesterday. “Despite massive Swiss National Bank intervention, the franc has hardly weakened, signaling that for all the recent bullishness of global markets, there remains plenty of distressed demand for safe-haven assets like the franc within Europe.”

The franc was at 1.0684 per dollar as of 7:45 a.m. in Zurich, little changed this year. It was at 1.5249 against the euro, for a 2.1 percent decline on the year.

To contact the reporter on this story: Justin Carrigan in London at jcarrigan@bloomberg.net