Swiss Franc Declines After SNB Moves to Peg Currency

Yesterday’s announcement by the Swiss National Bank that it would seek to maintain the currency at 1.20 Swiss francs to the euro resulted in a decline of more than 8 percent for the franc. In recent months, the Swiss currency has been in great demand as a “safe haven” resulting in an appreciation in the franc’s value that ultimately forced the central bank to intervene in an attempt to protect export sales.

“We will see a lot more intervention now, we will see manipulation on a grand scale,” said Stuart Thomson, at Ignis Asset Management in Glasgow. “Traditional safe havens are trying to undermine the value of their currencies.”

Source: Bloomberg

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