The Swiss franc fell on Thursday and extended its move down on Friday as prospects of even more accommodative monetary policy made the currency less appealing to investors.
While the franc is considered a safe currency, currently it has limited appeal due to desperate attempts of the Swiss National Bank to reinvigorate Switzerland’s economy. Such attempts involved implementing negative interest rates — the move that had a big negative impact on the Swissie. But what is more, SNB Chairman Thomas Jordan signaled about possibility of cutting rates even deeper into negative territory. He said:
We have already gone quite far with negative interest rates and now we are observing the situation closely. We are ruling nothing out.
The move would follow the similar actions of quite a few other central banks of developed economies. The latest of them was made by the central bank of Sweden that reduced its already negative borrowing costs yesterday.
USD/CHF ticked up from 0.9722 to 0.9736 as of 2:19 GMT today. EUR/CHF gained from 1.0993 to 1.1001 yesterday and traded at about 1.1011 today. CHF/JPY dropped from 116.42 to 115.56 during the previous trading session and was near 115.13 during the current session.
If you have any questions, comments or opinions regarding the Swiss Franc,
feel free to post them using the commentary form below.