The recent weakness of the Swiss franc led to speculations that cap on the currency that the Swiss National Bank has introduced in 2011 is no longer necessary. The Swissie declined today, but rebounded later, erasing losses versus the US dollar and reducing the drop against the euro. As of now though, the currency resumed its drop.
The franc was not trading near the ceiling of 1.20 per euro this year. This led to speculations that the Forex market is doing the SNB’s work for it and the cap should be dropped. Indeed, SNB President Thomas Jordan admitted earlier this week that the currency was trading far away from the limit, but defended the ceiling nevertheless, saying that the exchange rate is “still high”.
USD/CHF ticked up from 0.9098 to 0.9115 as of 12:57 GMT today after falling to 0.9081. EUR/CHF advanced from 1.2301 to 1.2317.
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