Franc Surges as US Treasury Announces Bond Repurchase Plan
The Swiss franc surged sharply in value on Wednesday against both the US dollar and euro due to an announcement by the US Treasury.
The dollar/franc exchange rate plummeted from over 0.81 to just under 0.80, while the euro/franc exchange rate dropped from over 0.94 to as low as 0.9323, primarily attributed to dollar weakness triggered by the Treasury's plan to significantly increase its repurchases of long-term bonds.
The yields on US government bonds plummeted immediately following the announcement, making US bonds less attractive to investors and driving capital flows towards other countries or asset classes, which weakened the dollar.
As a result, gold prices rose by over $100 (CHF79) to just under $4,500 per ounce, while Bitcoin climbed back up to nearly $70,000, reaching its highest level since early June.