Franc Mixed as Swiss Economy Expands
The Swiss franc fell versus the US dollar and rose against the euro today. The Swiss economy unexpectedly grew last quarter, suggesting that the strong currency is not that detrimental to economic growth.
Swiss gross domestic product expanded 0.2 percent in the fourth quarter of 2012 from the third quarter, when the economy grew 0.6 percent. This was a nice surprise as economists have expected no growth. The data suggests that the strength of the franc is not harming the Swiss economy very much. Still, it is unlikely that the Swiss National Bank will drop its cap on the currency’s exchange rate.
USD/CHF rose from 0.9293 to 0.9298 as of 12:36 GMT today. EUR/CHF went down a bit from 1.2209 to 1.2204.
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Earlier News About the Swiss Franc:
- Franc Rises Despite Wishes of Swiss Policy Makers (2013-02-12)
- Swiss Franc Rises Even as Politicians Say It Should Be Weakened (2013-01-28)
- Franc Drops as Demand for Safety Wanes (2013-01-17)
- Swiss Franc Drops vs. Euro as CPI Declines (2013-01-11)
- Swissie Falls vs. Dollar on Poor Swiss Fundamental Data (2013-01-04)