The Swiss franc experienced a decline against the euro because of the intervention by the Swiss National Bank, as the central bank was selling the currency after it reached the record high level.
One of the SNB Governing Board members said that the policy makers will stop a further excessive appreciation of the frank. That’s a stricter position compared to his statement on March 18th, when he stated that the bank is unable to purchase foreign currencies indefinitely. The Swiss franc was selling by policy makers to curb the decline of consumer prices and to support the export.
Some analysts speak of the SNB intervention as an aggressive action and expect it to cause more harm than good. We should wait to see if the national bank and the policy makers will prevent further appreciation of the frank and how it will affect the currency.
EUR/CHF traded at 1.4321 today as of 20:58 GMT up from the opening price of 1.4321. USD/CHF is trading near 1.0541 after it opened at 1.0538.
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