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Risk Pervades Global Markets

Fluctuations in the euro and other currencies have investors hedging risk.

CFOs and others with a stake in the economy have been watching the stock markets and global debt discussions with bated breath, as many international variables are interconnected.

The debt troubles plaguing the European Union have sparked discussions of the eurozone breaking up, an idea that is "not so far-fetched," according to Eric Burroughs, writing on the Reuters blog.

For investors looking to hedge against this risk - which involves trillions of dollars worth of securities and derivatives, as well as the $13 trillion economic zone - he says the foreign exchange options market is an "obvious choice." However, potential Swiss franc investors also need to watch the actions of the Swiss National Bank, which has sought to relieve some of the pressure on its currency by "flooding liquidity and creating negative short-term interest rates."

Another area to watch is the fluctuation between the euro, the dollar, gold and other world currencies. Bloomberg reports that the euro was able to make gains - after posting losses a few days earlier - while gold fell 1.6 percent for the first time in seven sessions.

Seeking a safe harbor among the various currencies will continue to prove challenging.

"At the end of the day, the world is having trouble dealing with the world’s top two currencies both coming under pressure at the same time when there are not viable alternatives," Burroughs says.