Franc Close to Cap as Referendum Looms

The Swiss franc rose against the euro today, moving closer to the ceiling of 1.20 francs per euro. The Swissie advanced as the voting for new regulations nears. The currency was also rising versus the US dollar but lost its gains as of now.

Citizens of Switzerland will decide at referendum on November 30 whether some fiscal regulations should be changed. One of such changes is an increase of gold ratio in central bank’s reserves from 8 percent to 20 percent. Economists think that such change can make it difficult for the Swiss National Bank to keep the cap on the franc. The Swissie moved closer to the 1.20 per euro threshold. According to experts, the currency may break it, if the Swiss will vote for the new rules.

USD/CHF traded at 0.9674 as of 17:06 GMT today following the drop from 0.9644 to 0.9616 earlier. EUR/CHF declined from 1.2032 to 1.2024, trading near the lowest level since September 2012.

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