The Swiss franc rallied today following yesterday’s big drop. The currency declined on Wednesday after the Swiss National Bank narrowed the range of deposits that are exempt from negative interest rates.
The SNB announced yesterday:
The Swiss National Bank (SNB) has completed its review of exemptions, and has considerably reduced the group of sight deposit account holders that are exempt from negative interest.
The announcement led to a huge decline of the franc, but the currency pared (though not erased completely) the losses today. The possible reason for the currency’s resilience can be positive economic data from Switzerland. The ZEW expectations for Switzerland’s economy improved, and the Federal Statistical Office reported that the nation’s trade balance surplus widened in March, not narrowed as was predicted by economists.
USD/CHF fell from 0.9710 to 0.9554 and EUR/CHF dropped from 1.0415 to 1.0318 as of 15:03 GMT today.
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