Swiss franc set for biggest single day rise in 2.5yrs

Switzerland's franc on Wednesday posted its biggest single-day rise against the euro since the central bank removed its cap on the currency in January 2015.

Traders said hedge funds had cut leveraged bets against the franc, prompted in part by worries about increased US-North Korea tension. The Swiss franc is a traditional safe haven. The franc jumped 1.4 percent to 0.9611 francs per euro in early trades.

"The overnight Korean news has prompted some unwinding of the cheapening trades on the franc that has been going on for some time and though positioning is not stretched by any means, the franc's strength may have room to run," said Timothy Graf, head of macro strategy at State Street Global Markets in London.