Swiss Franc Falls Below 1.20 Against Euro

The Swiss franc fell below the historically important level of 1.20 versus the euro as the risk appetite drove investors away from safe currencies. Still, Swiss National Bank Chairman Thomas Jordan saw no reason to abandon the extremely loose monetary policy.

The franc traded below the 1.20 level defended by the SNB during its short-lived currency peg to the euro, which it has unexpectedly abandoned in January 2015. Yet Jordan said in an interview today:

We still have a relatively fragile situation, it can change from one day to the other, so we remain very prudent at this point. It’s not the time today to talk about changing monetary policy. We are convinced that the current monetary policy is still necessary.

USD/CHF rose from 0.9709 to 0.9739 as of 10:32 GMT today, trading near the highest level since January 12. EUR/CHF traded at about 1.1980 after opening at 1.1990, while its daily high of 1.2005 — the highest since the SNB abandoned the currency peg.

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