Franc Rebounds After Weber’s Comments

The Swiss franc advanced today, paring yesterday’s losses against the US dollar, as former Bundesbank President Axel Weber hinted that the currency may be appreciating amid the escalating crisis in Europe.
Weber said about Thomas Jordan’s ability to maintain the cap of the franc against the euro:

As solid and steady as he is as a central banker, so is the Swiss franc. I wake up in the morning and if somebody asks me where the Swiss franc is, I don’t need to look at any screens. I know where it is.

Jordan will be hard pressed to keep the ceiling of 1.20 francs per euro as more and more investors will fly to the Swiss currency, which previously was considered a safe haven. Yesterday, the franc fell against the euro as the Swiss National Bank was considering capital controls to prevent further appreciation of the currency.
USD/CHF was down from 0.9582 to 0.9578 as of 9:41 GMT today, following earlier drop to 0.9558. EUR/CHF fell from 1.2018 to 1.2014.

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