Foreign exchange Swiss franc in demand as a safe haven
The Swiss franc is once again more in demand as a safe haven than ever before. The reason for this is the Greenland conflict between the US and Europe.
20.01.2026, 11:42
SDA
US President Donald Trump's rhetoric towards Greenland and his threat to impose punitive tariffs on selected EU states if he does not obtain the Arctic territory has sent the markets into turmoil.
As a result, the stock markets have abruptly ended their recent rally - investors are fleeing to safe havens. In addition to gold, the Swiss franc has also benefited greatly from this: One dollar currently costs less than 79 centimes.
The greenback was only much lower after the minimum euro exchange rate was lifted in January 2015, making the franc the "ultimate" safe haven in the current uncertain times, writes Commerzbank.
Dollar sell-off
Traders are talking about a "pronounced" weakness of the dollar. This is because the US currency is also being severely weakened by Trump's attacks on the US Federal Reserve. He regularly demands interest rate cuts from the Fed, and the president is also due to announce the successor to Fed Chairman Jerome Powell, who will step down in May, in the near future.
Depending on who Trump appoints to the top post at the world's most important central bank, this could once again lead to negative reactions. "Because the independence of the central bank is its greatest asset," says one trader. Any doubt about this is likely to further weaken the currency.
Trump is unlikely to nominate a successor to Powell who is not "in line with him" per se, says one strategist. This means that uncertainty remains high as to how the Fed's monetary policy will continue.
