Swiss Franc Jumps vs. Dollar & Yen
The Swiss franc jumped today against the US dollar and the Japanese yen as positive market sentiment diminished attractiveness of the currencies of Japan and the United States.
Sometimes, the Swiss franc tends to behave more like risky currency, not like a safe one, since it was pegged to the euro. Today’s positive sentiment made the euro to rise and that, in turn, allowed the franc to rally. The optimistic outlook for the Greek bond swap and sings of robust growth in different parts of the world were responsible for the gains of the euro and, consequently, the franc.
The Swiss National Bank spent 17.8 billion francs ($19.5 billion) last year to prevent franc’s appreciation. Analysts say that the SNB was successful in easing the negative impact of the strong currency on the nation’s economy. That’s good for the franc as it means the central bank is less likely to boost the ceiling for the currency to weaken it more.
USD/CHF slipped from 0.9165 to 0.9081 yesterday and traded today at 0.9087 as of 00:14 GMT. CHF/JPY was at 89.69 today, following the rise from 88.44 to 89.77 on the previous trading session.
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Earlier News About the Swiss Franc:
- Franc Weakens as Greek Talks Progress (2012-02-08)
- Franc Flat as Trade Balance Decreases Even as Export Grows (2012-02-03)
- Swiss Franc Mixed Today (2012-01-31)
- Franc Rises, Will SNB Intervention Follow? (2012-01-28)
- Franc Gains After Hildebrand Resigns (2012-01-09)