USDCHF 0.7869,
The SNB said it would further increase liquidity to the Swiss franc money market in order to drive down money-market interest rates and weaken the franc’s exchange rate. The SNB said it would further boost banks’ sight deposits at the central bank, continuing repurchases of outstanding SNB bills and using foreign-exchange swaps.
Read the SNB announcement.
The euro EURCHF -0.9503%
traded at 1.1322 francs, down 1% from Tuesday. There are 100 centimes in a franc.
Markets Hub: Euro-zone leaders must find unity
The Swiss franc has soared to record levels versus both the euro and the U.S. dollar as debt problems and worries about slowing economic growth drive investors into the safe-haven currency.
The euro/franc cross could probe the CHF1.12 level over the course of the day, while the dollar/franc pair could test the 78.00 centime level if a rise in risk aversion prompts traders to challenge the SNB’s resolve, he said.
The euro EURUSD +0.1758%
The dollar index DXY -0.27%
The dollar traded at 76.58 yen versus the Japanese currency USDJPY -0.3108%
The franc strengthened after the
Swiss central bank stopped short of announcing a target rate or
to drive down the currency.
The Swiss National Bank will boost liquidity to the money
market, expanding banks’ sight deposits to 200 billion francs
outstanding SNB Bills and use foreign-exchange swap
The franc surged as much as 2.1 percent against
the euro, trading at 1.1303 at 10:55 a.m. in Zurich.
the foreign-exchange markets, which will want to push the franc
The franc reached a record high against the euro on Aug. 9,
While the SNB trimmed borrowing costs to
SNB Vice
euro among the legal possibilities.
of the franc,” without elaborating.
policy makers to peg the franc to the euro and commit to
unlimited currency interventions, he said on Bloomberg
that the franc’s ascent may hurt the economy. The currency is on
strengthened 11 percent this year against the euro. currency. Versus the dollar, the franc has appreciated 19
product, Swiss companies including
Government Support
The SNB has been reluctant to purchase foreign currencies
Swiss Economy Minister Johann Schneider-Ammann said last
The Swiss franc jumped on
Wednesday after the Swiss National Bank announced fresh measures
to drive down money market rates to stem the franc's strength,
but refrained from direct intervention or pegging the currency
measures were planned for now sent the Swiss franc higher as
demand for the safe-haven currency soon resumed.
The euro fell more than 2 percent against the Swiss franc
to hit a low of 1.12248 francs on EBS trading
exchange rate," said Lena Komileva, senior vice-president,
invite more speculative flows into the Swiss franc."
existing measures to counter the runaway Swiss franc by
measures against the currency's strength if necessary.
"With equity markets weak, the Swiss franc will be
currency strategist at Nordea in Copenhagen.
WEAK EURO
European equities fell 0.8 percent, while the euro
dropped 0.4 percent against the dollar to $1.4343 as
for closer euro zone integration, including deficit limits and
longer-term option.
76.25 yen.