Posted On: October 06, 2011
The monetary unit of Switzerland endured losses to rival currencies Thursday following the Swiss National Bank acknowledging September foreign-currency holdings grew to all-time highs, Bloomberg reports
The record-setting amount occurred following the institution opting to place a restriction on advances the currency can achieve. Renowned as a safe-asset storage, the Swiss franc was subject to repeated efforts to water down its strength over the summer.
"The Swiss National Bank supports the euro-franc exchange rate
with franc sales, and there is continued speculation that the SNB might raise the lower threshold for the euro-franc from 1.20," states a client note from senior currency strategist Lutz Karpowitz with Commerzbank in Frankfurt.
For a third consecutive day, the monetary unit dropped in value to the shared currency of the European Union while also slipping in value to the U.S. dollar. But the franc increased in value when held against the English pound after the Bank of England indicated it will re-start the program to purchase bonds.
RTT News reports
annual inflation in Switzerland increased more than antiicapted from 0.2 percent in August to 0.5 percent in September, according to the Federal Statistical Office.
Category: Industry News
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