swiss franc

Strong inflation data for April seems to have reassured the Swiss central bank into allowing the franc to strengthen to a new all-time high against the euro.

The franc has been strengthening all year, with the Swiss central bank often rumoured to have intervened, selling francs. Central bank governor, Philip Hildebrand, has previously stated a policy of intervention to counter “excessive appreciation”, but the bank never confirms individual cases. More on ft.com.

One Swiss franc can buy more euros than at any time since the launch of the currency in 1999. At 15.47 today, the currency traded at 1.4309, breaking its previous record of 1.4315 reached in October 2008.

Significant strengthening occurred last week, following comments from central bank board member Jean-Pierre Danthine. Read more

Rumours and anecdotal evidence of a shift in Swiss currency policy have been backed up by the comments of a Swiss National Board member. Read more

Is the Swiss National Bank allowing its currency to appreciate?

It may be coincidence, but the three previous times we reported rumours of bank intervention in the forex markets, the level at which they appeared to intervene was about 0.684 EUR per CHF (1, 2, 3). Read more

The Swiss National Bank has issued a characteristic response to questions of market intervention to weaken the Swiss franc: “We’re not commenting on that,” a spokesman told Reuters. Some traders had reported market activity by the bank, although it’s not conclusive from the chart when compared to the spike last Tuesday, when similar rumours were reported.

Traders say the Swiss National Bank was seen in Asian markets selling francs and buying euros. This would fit with Phillip Hildebrand’s stated policy of intervention to prevent excessive appreciation of the franc, which could harm Switzerland’s economic recovery. The SNB declined to comment. (Reuters)

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The Swiss franc has dropped 0.2 per cent amid speculation that the central bank sold the currency for the second time today. The central bank refused to comment. It is thought the francs bought euro.

The Swiss franc has been appreciating significantly against the euro. New central bank governor Philip Hildebrand has a stated policy of intervention where necessary to prevent ‘excessive appreciation’ of the franc, which has risen by 0.9 per cent against the euro since the start of the year. Read more

Eastern Europe is looking for ways to reduce dependence on loans denominated in foreign currencies, particularly the euro and Swiss franc.

Officials at the EBRD meeting in London this weekend agreed to find ways to develop local currency markets in order to reduce dependence on foreign currency credits. Officials are not looking to regulate but to encourage voluntary moves by banks to tighten rules on foreign currency loans. Officials plan to meet again early next year, preparing concrete proposals by spring. Read more