Craig Erlam, market analyst at Alpari, says the Swiss franc and yen are good currencies to buy amid the U.S. government shutdown because they have save haven status.
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The currency, which has provided refuge for investors during the euro zone debt crisis, may be the next safe haven to fall, says Societe Generale.
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The Swiss National Bank reiterated its commitment to cap the franc's rise at 1.20 per euro to lessen the risk of a recession as it kept rates on hold at zero on Thursday.
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The Swiss franc plummeted versus the euro and dollar on Tuesday, after Switzerland's central bank shocked markets by setting a floor for the euro/Swiss exchange rate in an effort to curb franc strength which has taken a toll on the economy.*
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The Swiss National Bank said on Tuesday it would set a minimum exchange rate target of 1.20 francs to the euro and would enforce it by buying foreign currency in unlimited quantities.
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The Swiss franc on Thursday held on to gains made the previous day after a top government official said Switzerland would have to live with a strong currency, while commodity currencies dipped after Brazil unexpectedly cut interest rates, citing worries about the global economy.*
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Safe-haven currencies like the Swiss franc stayed under pressure in Asia on Tuesday, following a solid performance in riskier assets overnight that drove commodity currencies sharply higher.
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