Is the dollar finally responding to the fears in the market? Well, perhaps considering that this now involves a European, or more specifically a Swiss, name. The euro and franc has tumbled with EUR/USD falling by 0.5% from around 1.0730 earlier to 1.0670 levels currently. Meanwhile, USD/CHF is up 0.6% on the day to 0.9190 at the moment.
The Japanese yen is the biggest beneficiary in all of this though, as markets start to lean towards a flight to safety once again. It's all about the jitters with US futures down 1% and bond yields tumbling lower after a solid bounce at the start of the day. USD/JPY is now down 0.3% to 133.80 levels after taking a shot at 135.00 earlier:
As to the reason for the renewed risk aversion, Credit Suisse is the big name involved as mentioned here. Bank stocks in Europe are being pummeled and Credit Suisse itself is seeing shares fall to a fresh record low below $2: