Swiss Franc Higher Amid Risk Aversion
(RTTNews) - The Swiss franc was higher against its most major counterparts on Monday amid risk aversion, as emergence of Chinese startup DeepSeek indicated shift in perceptions about U.S. dominance in artificial intelligence.
The sell-off on Wall Street comes amid substantial weakness among technology stocks, with AI darling and sector leader Nvidia plummeting by 14.4 percent.
The plunge by Nvidia comes after Chinese startup DeepSeek's AI Assistant overtook rival ChatGPT to become the top-rated free application available on Apple's App Store in the United States.
DeepSeek's ascendance has doubt on Silicon Valley's hefty AI capex spending and the sustainability of the U.S. technical edge in artificial intelligence.
Concerns about the outlook for interest rates also weighed ahead of the Federal Reserve's monetary policy meeting this week.
While the Fed is almost universally expected to leave interest rates unchanged, traders are likely to pay close attention to the accompanying statement for clues about the outlook for rates.
The franc climbed to a 5-week high of 0.8965 against the greenback and a 4-day high of 0.9427 against the euro, off its early lows of 0.9073 and 0.9506, respectively. The currency is seen facing resistance around 0.88 against the greenback and 0.93 against the euro.
The franc edged up to 1.1209 against the pound. The currency is poised to challenge resistance around the 1.11 level.
In contrast, the franc fell to a 6-day low of 171.09 against the yen. The next possible support for the currency is seen around the 167.00 level.
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