Libyan Uprising and Higher Oil Prices Aid Swiss Franc

The Swiss franc strengthened today as the conflict in Libya continues, disrupting oil supplies and endangering the world economy. The investors again seek safety under such conditions.

The forces loyal to Libya’s Leader Muammar al-Gaddafi performed the air and artillery strikes on the central oil ports to stop the advance of rebels along the coast. At the same time the Gaddafi forces attack towns in the west that have revolted. Crude oil rose 0.9 percent in New York after it reached earlier this week $106.95, the highest price in two and a half years.

The franc was also boosted by the speculation that the Swiss National Bank will lift the interest rates as the Swiss inflation rose 0.4 percent in February. The central bank’s key borrowing rate has remained at 0.25 percent since 2009.

USD/CHF went down from 0.9350 to 0.9297 as of 20:05 GMT today and posted the intraday low of 0.9268. EUR/CHF traded at about 1.2927 after falling from 1.3001 to 1.2894.