Swiss Franc Records Largest Weekly Gain Against Euro Since March on Risk

(Bloomberg) -- The Swiss franc had its biggest
weekly gain against the euro in more than four months as a slump
in global stocks prompted traders to pay back loans in
Switzerland used to buy higher-yielding assets elsewhere.

The franc advanced against the Australian and New Zealand
dollars as investors unwound so-called carry trades that take
advantage of borrowing costs in Switzerland, which are the
second lowest among major economies. New Zealand's key interest
rate is 5.75 percentage points higher than the Swiss benchmark.


Read more at Bloomberg Currencies News

S. African Rand Posts Third Weekly Gain as Interest Rate Spurs Carry Trade

(Bloomberg) -- South Africa's rand posted its third
week of gains against the dollar as expectations of higher
interest rates spurred investor appetite for so-called carry
trades.

The rand traded near the highest in almost two weeks,
supported by investors seeking out South Africa's 9.5 percent
interest rate in trades funded by borrowing the Japanese yen or
Swiss franc more cheaply. A report yesterday showing quicker-
than-expected manufacturing growth added to speculation the
Reserve Bank will raise borrowing costs further.


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Swiss Franc Gains as Central Bank Says More Interest-Rate Increases Likely

(Bloomberg) -- The Swiss franc gained versus the
euro after Swiss National Bank President Jean-Pierre Roth said
more interest-rate increases are likely to be needed to prevent
inflation quickening.

The Zurich-based SNB raised its three-month Libor target
rate by 25 basis points to 2.5 percent, the highest since
September 2001, matching the forecast of all 25 economists in a
Bloomberg News survey.


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Swiss Franc Drops Versus Dollar; Central Bank Raises Interest Rate to 2.5%

(Bloomberg) -- The Swiss franc erased gains versus
the euro and fell against the dollar after the central bank
raised its target interest rate by a quarter point.

The Zurich-based Swiss National Bank increased its three-
month Libor target rate by 25 basis points to 2.5 percent, the
highest since September 2001, matching the forecast of all 25
economists in a Bloomberg News survey.


Read more at Bloomberg Currencies News