Commodity Currencies Only Refuge as Intervention Upends Havens

(Updates prices throughout, from the seventh paragraph. EXT4 <GO> See for more on the crisis of sovereign debt.)

Aug. 8 (Reuters) - Paradise lost money as Switzerland and Japan to intervene in currency markets, while U.S. and European debt burdens undermine credit ratings.

The main beneficiaries of the $ 4000000000000-a-day money market can be Norwegian Krone and the Australian and New Zealand dollars, according to Frankfurt Trust, which oversees about $ 23 billion.All have a debt that is less than 48 percent of gross domestic product, about 60 percent against the U.S., 77 percent in the United Kingdom and 79 percent in Germany, according to data compiled by Bloomberg.

The Swiss franc and Japanese yen, which had become favorites of traders cautious about holding dollars and euros, has become dangerous after the Swiss National Bank unexpectedly cut interest rates and Japan sold its currency. The yen weakened as much as 3.2 percent on Aug. 4, according to Bloomberg correlation weighted indexes. United Statescame within days of failing levels and bond yields in Italy and Spain which have stimulated approached rescue of Greece and Ireland.

"You want to stay away from the euro and the dollar, as this is really a pair of ugly and there are alternatives," Christoph Kind, head of asset allocation at Frankfurt Trust in Frankfurt, said in a telephone interview last week. "I like currencies like the Australian dollar and New Zealand, the Swedish krona and Norwegian krone. They are AAA-rated country with a currency they can manage and handle, and they have very liquid markets."

S & P Downgrade

Standard & Poor downgraded the U.S. AAA credit for the first time on August 5, lowering the classification to AA +. The company kept the outlook to "negative", saying he was less confident that Congress will end tax cuts of the Bush era, or the rights deal.

Even after the largest declines of more than a year last week, New Zealand and Australian dollars are the only currencies outside the franc has risen over the past 12 months among the 10 major peer followed by the indices Bloomberg.The kiwi, as the currency of New Zealand is known, rose 3.5 percent in the period, with the Australian said up 2.6 percent, the indexes show. The franc soared 29 percent.

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