The Swiss franc dropped after Switzerland’s central bank reported that the nation’s foreign currency reserves decline last month.
The Swiss National Bank reported that the foreign currency reserves declined to 242.7 billion francs on October from 282.2 billion francs in September. The balance of the foreign assets was down 29.7 billion francs in September, following the drop by 12.3 billion francs in August.
For a long time the SNB was attempting to weaken the franc. The central bank achieved its goal by pegging the currency to the euro and the franc has weakened by a great deal since that measure was implemented on September 6. There is speculation that the strong currency has already dealt damage to the nation’s economy and such concerns also eat away attractiveness of the franc.
USD/CHF rose from 0.8782 to close at 0.8845 and EUR/CHF climbed from 1.2133 to 1.2195 yesterday. CHF/JPY fell from 88.82 to 88.41.
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