Swiss Franc Regains Footing as Talks About Ceiling Recede

The Swiss franc strengthened as the speculation the Swiss National Bank won’t boost the cap to the currency made investors to look at the franc with renewed interest.
The SNB pegged the franc to the euro on September 6, imposing ceiling for the first time in more than three decades. Since the introduction of the cap the performance of the franc tied to the performance of the euro. Currently, the euro is rising with the advance of the European stocks and the franc follows. The Stoxx Europe 600 Index gained 1.5 percent as market participants anticipate recapitalization of the European banks.
Analysts consider the current rally of the franc as a reaction to the dollar sell-off, not a sign that the previous strength of the Swiss currency is returning. By itself, the franc lost much of its appeal since the introduction of the euro-peg, essentially losing its status as the safe haven.
USD/CHF traded at about 0.8961 today as of 5:16 GMT after falling yesterday from 0.9084 to 0.8949. EUR/CHF traded near 1.2369, following the drop from 1.2393 to 1.2343. CHF/JPY advanced from 84.32 to 86.29 on the previous trading session and traded at 85.99 today.

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