The Swiss National Bank is seemingly still worried over the continued appreciation for their currency as the Franc continues to advance versus its 16-nation single currency, the euro, where the franc is trading among its strongest levels since March 09.
Philipp Hildebrand, the SNB President said in a prepared remarks read in Zurich today by spokesman Werner Abegg, that the SNB will monitor foreign-exchange market developments very closely. The Franc has already set the strongest appreciation versus the euro in December in a year after investors assumed that the SNB has softened their stance on the currency's appreciation which now the president has aroused again as a dominant concern.
Amid the crisis and the flee to have and unwinding of carry trades the Swiss franc soared versus its major counterparts, especially the dollar and the European currencies, the euro and sterling, forcing the SNB to sell their currency in March to offset the gains and also suppress rising deflationary pressures.
Such comments from the SNB are surely going to negatively affect the Swiss Franc's volatility and trading in the coming period as investors increase their bets on an intervention and a new round of franc sale by the SNB.