The Swiss franc continues to gain over most of the major currencies despite the central bank’s attempts to lessen the franc’s appeal as a safety haven in light of the problems in the U.S. and the Eurozone. One possible form of intervention being considered is to set a “target” limiting the franc’s value.
Ã¢â‚¬Å“The market is rightly nervous about whatÃ¢â‚¬â„¢s likely to come from the Swiss authorities as they have a track record of going down more unconventional policy steps,Ã¢â‚¬Â said Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. Ã¢â‚¬Å“If the steps will be enough to reverse the Swiss francÃ¢â‚¬â„¢s strengthening trend remains to be seen, but at these levels of overvaluation, which are very extreme, the risk-reward is more favorable in their way.Ã¢â‚¬Â
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