2023-12-28 19:02:50
The franc strengthened further once morest the euro, reaching a new high since the lifting of the floor rate in January 2015. Thursday at 5:15 p.m., the community currency was only worth 92.86 cents, following briefly approaching 92 .5 cents in the followingnoon.
A traditional safe haven, the Swiss currency benefited from market expectations of cuts in key central bank rates, now that the inflationary surge seems contained.
On January 12, 2015, the euro reached its historic low once morest the franc, at 85.80 cents, in the wake of the decision of the Swiss National Bank (SNB) to abandon the floor rate then set at 1, 20 francs to support exports.
>> Read more: The abandonment of the floor rate once morest the euro shakes up the markets
Same dynamic once morest the dollar
The franc also appreciated once morest the dollar. At 83.64 cents, the greenback had not been so cheap since September 2011.
“The US dollar fell sharply once morest major currencies, allowing the euro, pound sterling and yen to extend their gains,” says Swissquote’s Ipek Ozkardeskaya. A trend encouraged by speculation that the American Federal Reserve (Fed) would be the first issuing institution to lower its key rates.
Asked by the AWP agency, the management of the BNS did not wish to comment on this new appreciation of the franc. In mid-December, his boss Thomas Jordan suggested that new currency sales were no longer a “priority” for the establishment.
In 2023, the SNB carried out currency sales in order to support the franc and thus fight once morest imported inflation, whereas in previous years, it had on the contrary purchased several hundred billion worth in order to weaken the franc.
>> Read also: The SNB sold currencies massively in the second quarter and the strength of the franc protected Switzerland from inflation
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