LONDON, Nov 15 (Reuters) – The euro touched a May 2020 low against the safe haven Swiss franc on Monday, and the dollar hovered around a 16-month high as U.S. inflation raised bets on a Federal Reserve interest rate hike.
With inflation fears rising and concerns over the COVID-19 pandemic pressuring global economic growth, the Swiss franc hit 1.0530 against the euro overnight, its highest level versus the single currency in 18 months. It was up 0.1% at 1.0535 at 1210 GMT.
Interest for the euro/Swiss franc cross has grown sharply, said Simon Harvey, senior FX market analyst at Monex Europe, “because the Swiss franc is a natural hedge against inflation.”
Supply-chain bottlenecks and soaring energy costs are slowing euro zone growth and will keep inflation high for even longer than had been thought,…