The Swiss franc dropped today against the euro, leading to the speculation that the Swiss National Bank renewed its selling of the franc to prevent the strong currency from harming the economy; the U.S. dollar demonstrated the worse performance, therefore against the greenback the Swiss currency rose.
Previously the franc grew as the report indicated that the Swiss manufacturing expanded for the 10th month. The SNB said on June 17th that the pressure of the deflation has mostly gone, hinting that it may put the end to its practice of interventions in order to weaken the currency. Yet the bank said that it’s ready to intervene in case the strong franc would threaten the economic growth.
The analysts say that the franc’s weakness is the sign of another intervention by the SNB. If it’s so, even the intervention wasn’t able to offset the dollar’s weakness, allowing the franc to outperform the U.S. currency.
USD/CHF traded near 1.0592 as of 20:57 GMT today after it opened at 1.0772. EUR/CHF rose to about 1.3266 from its opening price of 1.3181.
If you have any questions, comments or opinions regarding the Swiss Franc,
feel free to post them using the commentary form below.
Be First to Comment