Franc Weakens as Greek Talks Progress

The Swiss franc was down today as tensions about Greece eased and Swiss officials repeated that the currency is too strong and hurting nation’s exporters, therefore it should be weaker.

The franc is still considered a safe currency, even though its status was hurt by the euro-peg, and today there is less need for safety among Forex traders. Thomas Jordan, Vice-Chairman of the Governing Board of the Swiss National Bank, spoke yesterday, suggesting that the strength of the Swiss currency is still harming the nation’s economy. Jordan said:

The situation remains challenging for large sections of the economy – even at the current exchange rate, the Swiss franc is still very strong. We expect it to weaken over time, and fall back to a level more in line with its economic fundamentals.

USD/CHF rose from 0.9115 to 0.9138 before retreating to its opening level and EUR/CHF went up from 1.2087 to 1.2108 as of 11:15 GMT today.

If you have any questions, comments or opinions regarding the Swiss Franc,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *