Since the month of December, it is the first time that the Swiss Franc has strengthened itself to parity with the Dollar. This has come up just as the global economic revival is making the investors irresolute to the apparent safety of the currency.
Also, the stocks dropped and the currency of Switzerland appreciated against 15 of the total 16 most traded counterparts, as said by European Central Bank Governing Council member, Axel Weber.
With this, the US unit has fallen to a near parity against the Swiss Franc and it has now hit a new 15 year low versus the Yen. On the other hand, the Euro has slid against the Dollar with a collapse in German investor confidence.
"The Franc is benefiting from a lot of uncertainty in the major currencies, the Euro-Dollar especially, because of galloping debt increases in Europe and the U. S.", said Henrik Gullberg, a Currency Strategist at Deutsche Bank AG in London.
On Monday, the European single currency was 1.2880 Dollars; whereas, it today drooped to 1.2845 Dollars. In addition, the Dollar has also slumped to the lowest level since May 1995 and has come down to 83.07 Yen.
This extreme fall came after the Japanese Prime Minister Naoto Kan made a rapid intervention in foreign exchange markets, after winning the party leadership election.