By: Barbara Zigah
A day after the Swiss National Bank intervened in their currency’s rise and the Swiss Franc is continuing to fall lower against the U.S. Dollar and the common currency Euro in Asian trading largely, however, a factor of investors’ speculation that the SNB will dump more liquidity into the forex forwards market. The Swiss central bank has been diligently working to suppress the Swiss Franc’s upward rise, which is making doing business significantly harder and more expensive for Swiss business.
Even after yesterday’s move, seen by some as relatively ineffective, the Swiss Franc took quite a while before establishing a firm downtrend, clear evidence that investors are more worried about global economics than being caught holding the Swissie. Confirmation of the SNBs move into the forwards market hasn’t yet been received, however. The SNB has been adamant that they would take whatever steps deemed necessary and within their mandate to hold the Swiss Franc down.
As reported at 2:21 p.m. (JST) in Japan the Euro was up 0.5% against the Swiss Franc, trading at 1.1463 Swiss Francs, after having touched on an intra-session high of 1.1515 Swiss Francs earlier. The U.S. Dollar rose 0.7% to 0.7958 Swiss Francs, retreating from 0.7991 Swiss Francs touched on earlier.