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Franc Gains as SNB Maintains Cap

December 15, 2011 at 10:27 by Vladimir Vyun

Swiss coins on franc notesThe Swiss franc climbed today after Philipp Hildebrand, Chairman of the Governing Board of the Swiss National Bank, announced that the central bank would keep the ceiling at 1.20 francs per euro and leave the main interest rate unchanged.

There were many talks about possible increase of the cap for the Swiss currency. Such speculations proved untrue, at least for now, as the SNB refrained from weakening the Swissie further. Hildebrand wrote in the statement:

The Swiss National Bank (SNB) reaffirms its commitment to the minimum exchange rate of CHF 1.20 per euro. It will continue to enforce this minimum rate with the utmost determination. It is prepared to buy foreign currency in unlimited quantities.

He said that the currency is still rather strong and signaled that further weakening of the currency isn’t out of question.

USD/CHF slid from 0.9532 to 0.9442 today as of 10:26 GMT, following the earlier fall to 0.9403, while EUR/CHF went lower from 1.2376 to 1.2264.

If you have any questions, comments, or opinions regarding the Swiss Franc, feel free to post them using the commentary form below.

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