Swiss Franc Rebounds After Drop on Intervention Speculations

The Swiss franc dipped earlier today on speculations that the Swiss National Bank will intervene to bring the exchange rate down. The currency bounced later and trades above the opening level against the US dollar as of now.

There were rumors that the SNB may intervene to lower the value of the Swissie, though there were no confirmation from central bank’s officials. The franc jumped sharply after the SNB shocked the market by unexpectedly dropping the 1.20 francs per euro cap earlier this month. It is reasonable to expect that the central bank will take measures to reduce the exchange rate closer to the levels at which the franc was trading before the jump.

USD/CHF dipped from 0.9024 to 0.8962 as of 13:39 GMT today after rallying to 0.9163. EUR/CHF rallied from 1.0145 to 1.0375 before returning to the opening level.

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