The Swiss franc rallied today even as Swiss policy maker were complaining about the strength of the currency, hinting that they are going to keep the franc weak. The currency erased gains versus the euro and fell against the yen.
Swiss National Bank President Thomas Jordan told reporters that the franc is “still at a high level even at the current price”. He defended the central bank’s measures to keep the currency weak, claiming that it is not a currency manipulation. Such words mean that the ceiling of 1.20 francs per euro will not be removed anytime soon.
The Consumer Price Index fell 0.3 percent in January following that the 0.2 percent drop in the previous month. Slowing inflation suggests that the economy is not doing well, giving additional incentive for the SNB to keep the Swiss currency weak. Yet the franc’s behavior did not adhere to common logic today as it rose even in face of all the negative factors.
USD/CHF fell from 0.9199 to 0.9171 as of 23:20 GMT today. EUR/CHF fell from 1.2333 to 1.2283, but rebounded and traded near the opening level. CHF/JPY declined from 102.42 to 101.77.
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