SNB Leaves Franc Limit Unchanged, Remains Opposed to Franc Appreciation
Despite speculation that Europe’s ongoing debt crisis and the devaluation of the single currency would prompt a rethink of the Swiss-Euro relationship, the Swiss National Bank today left its limit on the Franc unchanged at 1.20 Euros per Franc. The SNB has held this level since its intervention this past summer.
Swiss exporters have encouraged the SNB to move the limit to 1.25%, after taking losses last year when the safe Franc gained some 37% against the beleaguered Euro. Although the SNB did not change the rate today, it left open the possibility for a future move of this sort, stating that market development over the past few month fit Swiss projections. SNB officials stated today that the Franc should continue to depreciate over time.
EURCHF pulled back and consolidated following the SNB decision today.
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