The Swiss franc soared yesterday and remained strong today even as the nation’s central bank kept the cap on the currency in place and signaled that it wants the Swissie to weaken.
The Swiss National Bank maintained interest rates near zero on today’s meeting. The bank complained about the strength of the franc and promised to keep the ceiling intact as long as necessary in the statement:
The Swiss National Bank (SNB) is maintaining its minimum exchange rate of CHF 1.20 per euro. The Swiss franc is still high. The SNB stands ready to enforce the minimum exchange rate, if necessary, by buying foreign currency in unlimited quantities, and to take further measures, as required.
Of course, the major reason for the rally of most currencies was yesterday’s policy decision of the Federal Reserve. Still, it was somewhat surprising to see the franc, the currency considered to be a safe investment, rallying in the risk-positive environment.
USD/CHF went down from 0.9117 to 0.9104 as of 22:38 GMT today and its daily low of 0.9089 was lowest since February 7. EUR/CHF traded at 1.2321 after opening at 1.2326. CHF/JPY climbed from 107.35 to 109.13, trading near the record high.
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