Franc Unfazed by SNB Attempts to Weaken Currency

The Swiss franc advanced today for the second day, paying no heed to the attempts of the Swiss central bank to prevent the currency from strengthening even more and hurting the nation’s economy. Currently the franc retreated somewhat against the dollar.

The Swiss National Bank announced yesterday that it’s increasing liquidity for the franc on markets and would continue to buy SNB bills and use foreign-exchange swap transactions. Immediately after that announcement the Swiss currency started rally that it still continues. It looks like without the promised euro-peg (or some other similarly drastic and unconventional step) the central bank wouldn’t be able to contain appreciation of the Swissie.

USD/CHF traded at 0.7908 as of 14:58 GMT today, rebounding from the decline to the daily low of 0.7857 from the opening rate of 0.7899. EUR/CHF fell from 1.1396 to 1.1318.

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