Franc Drops as Jordan Speaks on Negative Interest Rates & Franc Cap

The Swiss franc dropped today as Swiss National Bank President Thomas Jordan talked about possibility of negative interest rates and shifting of the cap on the franc.
Jordan warned about negative consequences of a strong currency:

An appreciation of the franc would endanger price stability and have structurally grave consequences for the Swiss economy.

He also spoke about changing the franc’s ceiling:

The adjustment of the minimum exchange rate is something that principally belongs to the options if needed. We will maintain the minimum exchange rate for as long as necessary.

Negative interest rates are in the cards too, though they could have “side effects”. Indeed, the International Monetary Fund described adverse effects of negative rates, but was optimistic about the idea nevertheless.
USD/CHF was up from 0.9699 to 0.9801 as of 23:39 GMT today. EUR/CHF advanced from 1.2518 to 1.2586. CHF/JPY ticked down from 105.59 to 105.24.

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