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2026-09-15 17:46:10
[Swiss Franc May Replace Yen as Preferred Funding Currency for Carry Trades] ⑴ In a report, Rabobank analysts pointed out that in carry trades, where investors borrow low-yielding currencies to buy high-yielding currencies, the Swiss franc may replace the yen as the preferred funding currency. ⑵ She stated that if the Bank of Japan hints at accelerating its policy tightening this Friday, given Switzerland's low interest rates, the market may turn its attention to the Swiss franc. ⑶ However, the Swiss franc's status as a safe-haven currency is deeply entrenched, which may deter some investors, as its exchange rate could rise sharply if market anxiety intensifies. ⑷ Rabobank predicts that the euro will rise to 0.95 against the Swiss franc within three months, but given the political risks facing the Eurozone next year, the bank expects the euro to not experience a strong rise.
