The Swiss franc rose reached today the highest level this week against the euro after the leading economic indicators remained at the highest level in almost four years.
The KOF Economic Barometer remained at 2.23 in July, the highest level since September 2006. The currency was also bolstered by the speculation that the Swiss National Bank began selling its dollar reserves.
Daragh Maher, deputy head of global currency strategy at Credit Agricole SA, said:
Economic numbers have improved and I guess the SNB is less concerned now about downside risks in the economy. For some time now, theyâve been selling the euro that they accumulated during the intervention to weaken the franc.
The SNB expected to raise the interest rates by quarter of percentage point in September and again by the same amount in December.
EUR/CHF went down to 1.3585 from 1.3612 as of 17:20 GMT after reaching 1.3509. USD/CHF traded at 1.0413, near its opening level of 1.0408.
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