The Swiss franc fell yesterday and maintained losses today as central bank’s Vice President Jean-Pierre Danthine indicated that the cap on the currency stays as long as the economic situation warrants. The currency managed to register gains versus the Japanese yen.
Danthine said:
The cap isnât there forever — it is there as long as it corresponds to monetary conditions.
Earlier, Swiss National Bank President Thomas Jordan that said he sees no reason to remove the ceiling. The SNB introduced the cap two years ago and it was breached only once for a very short time.
Domestic data was not helping the Swissie. The SVME Purchasing Managers’ Index was at 54.6 in August. The figure was below the previous reading of 57.4 and the forecast of 55.9.
USD/CHF went up from 0.9341 to 0.9345 and EUR/CHF ticked up from 1.2323 to 1.2326 as of 4:00 GMT today. At the same time, CHF/JPY was up from 106.26 to 106.42.
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