Forex News

The Swiss franc advance has been a subject of great concern among central bankers in the tiny European nation as exporters are being affected by its high prices, raising speculations that the SNB is selling the currency to prevent its advances.

The Swiss franc retreated versus the euro and the pound after gaining sharply, on speculations that the nation’s central bank intervened to control the franc’s rally.

The Swiss currency finally felt the central bankers pressure and declined considerably versus most of its main trading partners’ currencies, on speculations that measures will be taken by the financial authorities to avoid the franc to gain.

The Swiss franc gained versus several key-currencies today despite the nation’s central bank concerns regarding the strength of its currency, which already was expressed previously in statements mentioning eventual future interventions to halt the franc’s rally.

After the SNB stated its position against further advances of its national currency, the Swiss Franc may be poised to decline versus main currencies, as fears of interventions are likely to shun investors from investing in the franc-priced assets.

The Swiss currency had its previous week rally versus currencies like the pound and the euro halted today after the national central bank took a position against further advances of the franc, as the current appreciation was considered excessive by SNB officials.

The Swiss franc, considered a refuge currency, benefited today from a rather risk averse scenario and gained versus several currencies, declining below less than 1.50 line versus the euro for the first time since March.

After touching parity and gaining further versus the U.S. dollar, the Swiss franc declined today versus virtually all 16 main traded currencies, as speculations indicate that the national central bank sold the currency to halt its rally.

The Swiss currency lost against most of the 16 main traded currencies as speculations suggests that the country is likely to tighten its financial regulations, decreasing attractiveness for the franc.

The Swiss central bank widened its foreign currency holdings in order to prevent the national currency to continue its rally, being the current foreign reserves in Switzerland the highest in twelve years.