EUR/CHF up to 1.2040 after Gold Vote

The Swiss franc slipped against the euro early on Monday after the Swiss National Bank affirmed its pledge to cap the currency as voters rejected proposals for the central bank to boost its gold reserves.

The other major currencies were more subdued with the euro a touch firmer against both the dollar and yen at $1.2452 and 148.05 respectively. The greenback held firm at 118.86 yen, just below a seven-year peak of 118.98 set late in November.

The “Save our Swiss gold” initiative would have forced the Swiss National Bank (SNB) to boost its gold reserves to 20 percent of its assets, from around 8 percent currently, and banned it from ever selling the metal. That would threaten its ability to defend a 1.20 euro cap on the franc.


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