Swiss franc gains favor in carry trades as investors shift from the volatile Japanese yen.

The Swiss franc is increasingly favored for carry trades as investors move away from the Japanese yen due to recent market turbulence. With a key interest rate of 1.25%, the Swiss National Bank offers attractive borrowing conditions compared to higher rates in the U.S., UK, and Eurozone. However, the franc's status as a safe-haven currency poses risks; sudden rallies could erode gains and compel investors to quickly exit positions.