Swiss Franc Pulls Back as SNB’s Hildebrand Says ’I’ Word

Swiss Franc Pulls Back as SNB’s Hildebrand Says ’I’ Word
Speaking of intervention, the Swiss franc tumbled across the majors as Swiss National Bank (SNB) Vice-Chairman Philipp Hildebrand brought up the “I” word during speech this afternoon, noting that the SNB could sell francs in the market to halt the currency’s gain, and in an “extreme case,” could even go so far as to fix the exchange rate. Furthermore, Mr. Hildebrand left the door open to quantitative easing, in line with what the ideas introduced by the Federal Reserve and Bank of England over the past month. Efforts to verbally boost the currency may help to quell speculative buying in the near-term, but if risk aversion drives carry trades lower once again, the SNB may be forced to attempt physical means.