Franc Retreats as SNB Expands Currency Reserves

The Swiss franc fell today as Switzerland’s central bank reported its foreign currency reserves grew in September. Traders fear the bank may take additional measures to weaken the franc.
The Swiss National Bank reported its foreign currency reserves expanded to 282.352 billion francs ($306 billion) in September from 253.351 billion in August. Forex analysts speculate that the SNB may lower the ceiling for the euro-franc exchanged rate. The central bank imposed cap on the franc rate against the euro on September 6, introducing threshold for the first time in more than three decades. This measure allowed the bank to stem the franc’s gains. The SNB hadn’t been able to rein the currency’s appreciation for couple of years before introducing the cap.
EUR/CHF rose from 1.2320 to 1.2343 today as of 10:01 GMT, while the daily maximum was 1.2426. CHF/JPY dropped from 83.16 to 82.85, following the fall to the minimum of 82.39.

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