Swiss Unemployment Drops, Franc Rise vs. Dollar & Euro

The Swiss franc fell versus the euro at the beginning of today’s trading session as the speculation the European Central Bank wouldn’t ease its monetary policy reduced the demand for the franc as the safe haven. The Swiss currency rose later after the report showed that the unemployment rate in Switzerland fell to the lowest level in more than a year.

Jean-Claude Trichet, the president of the European Central Bank, said yesterday that “more than ever, exchange rates should reflect economic fundamentals” and “excess volatility and disorderly moves have adverse implications for economic and financial stability”. The jobless rate in Switzerland dropped in September from 3.8 percent in August to 3.7 percent, the lowest level since May 2009.

USD/CHF fell from 0.9660 to 0.9644 as of 12:48 GMT today. EUR/CHF traded near 1.3441.

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