The Swiss franc depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the CHF 1.1935 level and was supported around the CHF 1.1835 level. Swiss National Bank yesterday reduced interest rates to historic lows, taking the target rate for three-month Swiss franc Libor to 0.25% from 0.50%. At the same time, SNB announced it will intervene in the exchange rate market to stop the Swiss franc€™s appreciation. Foreign investors also purchased a Swiss franc bond issue and this led to increased selling pressure on the franc. SNB is clearly trying to contend with the Swiss domestic economic slowdown by making its exports cheaper to the European Union, particularly Germany. Critics suggest this amounts to a €œbeggar-thy-neighbour€ policy that could precipitate inflationary pressures in Switzerland. Data released in Switzerland today saw February producer and import pritces fall 0.6% m/m and 1.8% y/y. U.S. dollar offers are cited around the CHF 1.1585 level. The euro and British pound moved higher vis-à-vis the Swiss franc as the crosses tested offers around the CHF 1.5400 and CHF 1.6735 levels, respectively.