Swiss Franc Down on Fears of Another Intervention from SNB

The Swiss franc dropped today on the speculation that Switzerland’s central bank will make steps to weaken the currency further as soon as the next week. Earlier the franc was rising as the unemployment rate remained low.

The franc attempted to use the uncertainty about Europe as a driving force, but failed. Switzerland’s unemployment rate remained at the almost three-year low of 3.0 percent in November for the seventh month. That helped the Swiss currency a little, but the slowing inflation and faltering economic growth caused the speculation that the Swiss National Bank on its meeting next week will take steps to further weaken the franc and may even implement negative interest rates.

USD/CHF rose a little from 0.9235 to 0.9240 today as of 12:14 GMT, following earlier drop to 0.9216. CHF/JPY slipped from 84.06 to 83.69.

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