Swiss Franc Gains, SNB Ready to Maintain Ceiling

The Swiss franc rose today against the US dollar, following gains of the euro. The currency fluctuated against the euro, staying near the cap, but not breaking it.

The Swiss National Bank capped the franc at 1.20 per euro last year and the currency has breached the ceiling only once on April 5. Central bank’s interim chief Thomas Jordan assured that the SNB is ready to buy foreign currency in unlimited quantities to maintain the ceiling. Analysts say that the bank won’t pursue aggressive weakening of the currency, but will rather keep the franc near the cap without breaching it. So far, the SNB was successful with this policy.
USD/CHF was down from 0.9172 to 0.9124 as of 14:22 GMT today. EUR/CHF traded at 1.2019, following the rise from 1.2024 to 1.2034.


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