The Swiss franc dropped today on speculations that the Swiss National Bank will implement negative interest rates as a measure to keep the currency weak and to help the nation’s economy overcome its problems.
The SNB set a cap on the franc back in 2011, effectively pegging it to the euro. With the European Central Bank implementing negative interest rates, the SNB may be forced to take the same route in order to maintain the ceiling. Today’s data from Switzerland supported the case for monetary stimulus as the Producer Price Index fell from 98.3 in July to 98.1 in August.
USD/CHF climbed from 0.9317 to 0.9366 as of 11:24 GMT today. EUR/CHF advanced from 1.2087 to 1.2099, reaching the high of 1.2113 intraday.
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