The Swiss franc gained yesterday and remained little-changed today against the US dollar and the euro even as economic expectations were worsening. The currency traded sideways versus the Japanese yen.
Swiss Franc CHF
Central Bank: Swiss National Bank
Interest Rate: 0.125%
Public Debt to GDP Ratio, 2011: 52.4%
Trade Balance, 2011: $18.4 bln.
Inflation, 2011: 0.2%
Anti-inflation hedge reputation
Factors of Weakness
The Swiss National Bank manipulates currency rate
The Swiss franc is the currency that is officially used in Switzerland and Liechtenstein, while also used in some other regions. The franc was introduced in 1850 as a currency used in the whole Switzerland, replacing different currencies that were used in different parts of the country (some of them were also called “franc”). The franc is considered a safe currency because of the stability of the Swiss economy and the near-zero inflation of the currency. Previously, the law that demanded that 40 percent of printed money should be supported by gold also supported the view on the franc as a safe currency, but that requirement was terminated in 2000.
Swiss Franc News Archive
May 16th, 2013 at 0:13
May 08th, 2013 at 1:15
The Swiss franc weakened today as the economic situation in Switzerland remained the same, giving the Swiss National Bank few reasons to drop the cap on the exchange rate.
May 07th, 2013 at 4:19
The Swiss franc fell on signs that the Swiss National Bank will preserve the cap on the currency as the economy does not recover fast enough to warrant changes to the current policies.
April 26th, 2013 at 11:13
The Swiss franc rose today on signs that Switzerland economy stabilized, giving hope that the Swiss National Bank will drop its cap on the currency sometime in the future.
March 28th, 2013 at 18:25
The Swiss franc jumped today, suggesting that traders still require a safe haven even as tensions around Cyprus eased somewhat. The rally was rather strong, almost erasing yesterday’s losses versus the US dollar.
March 14th, 2013 at 17:01
The Swiss franc jumped today even after the Swiss National Bank maintained the cap on the currency and signaled that the exchange rate is still high.
March 06th, 2013 at 10:46
The Swiss franc declined today, further moving away from the cap of 1.20 francs per euro, set by Swiss National Bank. Demand for the currency as a safe haven was limited among signs of economic growth in the United States.
February 28th, 2013 at 12:36
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.
February 12th, 2013 at 23:20
The Swiss franc rallied today even as Swiss policy maker were complaining about the strength of the currency, hinting that they are going to keep the franc weak. The currency erased gains versus the euro and fell against the yen.
January 28th, 2013 at 11:09
The Swiss franc advanced today even as Swiss politicians said that the currency is still strong and should be weakened further. It looks like even the recent drop of the Swissie was not enough to reduce the negative impact of strong currency on the nation’s economy.