The Swiss franc fell against the euro today, extending yesterday’s drop. The currency recovered a bit against the US dollar following the decline on the previous session and advanced versus the euro.
The IMF released its assessment of the Switzerland economy, which was fairly optimistic. It said that “the Swiss economy has been relatively stable” and predicted:
The economy is expected to regain momentum only gradually, in line with a baseline scenario of subdued global recovery.
Yet the IMF also discussed several issues. One of them was a potential introduction of negative interest rates:
The negative interest rate is a policy that may raise special issues and even have drawbacks, particularly when countries want to use it to stimulate credit and economic activity.
Nevertheless, the IMF considered negative rates to be a positive thing overall.
USD/CHF was down from 0.9699 to 0.9695 as of 1:05 GMT today after rising from 0.9667 to 0.9699 yesterday. EUR/CHF advanced from 1.2518 to 1.2529 — the highest since January 1. CHF/JPY rose from 105.59 to 105.78.
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