Posted On: August 16, 2011
The value of the Swiss franc gained Wednesday as the nation considered methods of watering down the soaring price of the monetary unit, Bloomberg reports
The franc gained more than 2 percent when compared to the European Union's shared currency as the Swiss National Bank has devoted significant effort to controlling the strength of what's considered a safe-haven currency.
"There were strong expectations, maybe too much, in terms of interventions or a peg," foreign exchange
strategy head Steven Saywell for Europe at BNP Paribas in London told Bloomberg. "What we're seeing here is disappointment," also noting "it's going to be very difficult for the SNB to stand in the way of the foreign-exchange markets, which will want to push the franc higher."
Coming off record highs against the euro on August 9, the franc is showing no signs of letting up despite repeated monetary easing. Temporarily pegging the franc to the euro is one option that has not been ruled out, according to Thomas Jordan, vice president of the Swiss National Bank.
The franc continued strengthening on Wednesday against rival currencies, including more than 2 percent gains against the U.S. dollar, Dow Jones Newswires reports
Category: Industry News
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