Swiss Franc Drops as SNB Keeps Monetary Stimulus

The Swiss franc slipped today after the nation’s central bank kept monetary policy unchanged and showed not intention to tighten its unconventional accommodative policy.

The Swiss National Bank kept its interest rates unchanged in the negative territory, in line with market expectations. The central bank continued to complain about the strength of the franc, saying that “the Swiss franc remains highly valued.” As a result, the SNB pledged to continue intervening in the currency markets to bring down the exchange rate:

The negative interest rate and the SNB’s willingness to intervene in the foreign exchange market as necessary therefore remain essential. This keeps the attractiveness of Swiss franc investments low and eases pressure on the currency.

USD/CHF rose from 0.9447 to 0.9470 as of 13:34 GMT today. EUR/CHF ticked up from 1.1683 to 1.1688, reaching the high of 1.1697 intraday.

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