The Swiss franc depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the CHF 1.0720 level and was supported around the CHF 1.0610 level. Data released in Switzerland today saw March consumer price inflation up 0.1% m/m and 1.4% y/y. Swiss National Bank is said to have intervened in the market last week by selling Swiss francs in what is estimated to have been a massive operation. Swiss monetary, financial, and government officials have been warning that they will not tolerate a further increase in the franc in recent weeks but many traders speculated the central bank would not intervene to weaken the franc on account of growth in the Swiss economy. While forecasts for economic growth and inflation have both been upwardly revised in recent weeks, SNB's latest probable intervention underscores their commitment to preserving an export-driven recovery. U.S. dollar offers are cited around the CHF 1.0920 level. The euro moved lower vis-à-vis the Swiss franc as the single currency tested bids around the CHF 1.4315 level while the British pound moved higher vis-à-vis the Swiss franc and tested offers around the CHF 1.6335 level.
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