Swiss Franc Climbs to Two-Year High Versus Dollar as Carry Trades Unwound

(Bloomberg) -- The Swiss franc rose to its highest in
more than two years against the dollar as investors sold riskier
assets, such as equities, and repaid loans taken out in the Swiss
currency.

The franc advanced against 14 of the 16 most-traded
currencies as stocks in Europe and Asia fell, following a drop in
benchmark U.S. equity markets last week. Traders unwound so-
called carry trades, where they borrowed the franc to buy higher-
yielding assets, on concern U.S. subprime mortgage losses will
erode economic growth.


Read more at Bloomberg Currencies News

South African Rand Posts Biggest Weekly Decline in 5 Months on Global Risk

(Bloomberg) -- South Africa's rand had its biggest
weekly slide against the dollar in almost five months as global
stocks slumped and investors sold emerging-market assets.

The rand also dropped against the yen and the Swiss franc
as investors sold South African stocks and bonds to unwind so-
called carry trades. Government debt declined for a third week
as traders raised cash to pay back loans in yen and francs used
to fund purchases of emerging-market securities.


Read more at Bloomberg Emerging Markets News

Rand Holds Near 2-Week High; Gains Already Reflect Interest-Rate Outlook

(Bloomberg) -- South Africa's rand traded little
changed, holding near a two-week high against the dollar, on
speculation that recent gains already reflect the outlook for
higher interest rates.

The rand earlier touched its highest since July 3, supported
by investors seeking out South Africa's 9.5 percent interest rate
in trades funded by borrowing Japanese yen or Swiss francs more
cheaply. The Reserve Bank has increased borrowing costs five
times in the past year and is expected to continue doing so to
curb inflation.


Read more at Bloomberg Currencies News

SGS profits rise, mergers and margins dent shares

(Reuters) - The Geneva-based SGS, whose initials stand for Societe Generale de Surveillance, said its full-year performance should be consistent with its 2008 outlook for 5 billion Swiss francs in revenues and operating margins of 17 percent.




While its 234 million Swiss franc net profit was in line with market forecasts, first-half operating margins of 15.5 percent were "clearly disappointing", said Kepler analyst Roger Steiner.


Read more at Reuters.com Hot Stocks News

U.S. stocks flat on rate fears; dollar gains

(Reuters) - The dollar rose to a 3-1/2-month high against the Swiss franc on higher Treasury yields. In contrast, the New Zealand dollar recorded its largest decline in more than a year on Monday after the Reserve Bank of New Zealand intervened in the market for the first time in 22 years and sold its own currency.




Gold rose, recovering from last week's sharp sell-off.


Read more at Reuters.com Hot Stocks News

Swiss Franc May Extend Gains to 16-Year High Against Yen, Dresdner Says

(Bloomberg) -- The Swiss franc may rise to a 16-year
high versus the yen on speculation quickening economic growth and
inflation will prompt Switzerland's central bank to raise
interest rates at a faster pace, according to Dresdner Kleinwort.

The franc has risen versus 11 of the 16 most actively traded
currencies in the past week, buoyed by speculation the Swiss
National Bank will raise rates by more than forecast to check
faster expansion and inflation. SNB President Jean-Pierre Roth
said June 4 the franc's weakness was of a ``passing nature.''


Read more at Bloomberg Currencies News