Spike of EUR/USD Leads to Speculation About SNB Intervention
The Swiss franc fell after a spike of the EUR/USD currency pair lead to speculations that the Swiss National Bank may take additional measures to erode the role of the franc as a safe haven.
Yesterday, for a short time, EUR/USD climbed to the highest level since March. The currency pair quickly pulled back, but that was enough to spur talks about another intervention by the SNB. There were rumors that the central bank plans to introduce a tax on deposit. Government and the bank’s officials refused to comment the speculations. Some economists say that the spike was likely caused just by some bank selling euros.
The SNB introduced the 1.20 cap on the franc against the euro in September last year. Since then, the Swiss currency was steadily appreciating, but stopped near the ceiling, breaking it only once. The franc was declining versus the dollar and the yen since April.
EUR/CHF traded at 1.2017 as of 00:20 GMT today after it climbed yesterday as high as 1.2074. USD/CHF jumped from 0.9542 to 0.9584 yesterday and stayed near that level today. CHF/JPY traded at about 83.10 at today’s trading session after falling from 83.24 to 83.01 on the yesterday’s trading session.
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