The Swiss franc fell on signs that the Swiss National Bank will preserve the cap on the currency as the economy does not recover fast enough to warrant changes to the current policies.
The SNB was preserving the ceiling of 1.20 francs per euro and is not likely to drop it anytime soon. Jean-Pierre Danthine, the Vice Chairman of the SNB Governing Board, said that “the franc is still highly valued”. He also noted “as the economic situation improves only very slowly, especially in the euro area, a change of course in monetary policy in the short term is highly unlikely”.
With no end for the central bank’s intervention, it is not surprise that the franc is performing badly. It even fell against the yen, though the franc has reached the highs not seen since 2011 against the Japanese currency at the beginning of April.
USD/CHF was at 0.9381 as of 4:19 GMT today after rising from 0.9348 to 0.9382 yesterday. EUR/CHF ticked up from 1.2267 to 1.2271. CHF/JPY went down from 105.83 to 105.57.
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