Swiss franc strengthens to multi-year high
The Swiss franc has jumped to its highest level against the dollar since 2015, when Switzerland’s central bank abandoned its policy to contain currency strength.
The currency reached CHF0.8551 per dollar on Friday, its strongest level in almost nine years. Versus the euro, the franc rose as high as CHF0.94112.
+ What lies ahead for the Swiss economy?
The franc is outperforming all its G10 currency peers this year, bolstered by the view that the Swiss National Bank’s (SNB) preference for a stronger domestic currency will keep it afloat.
Last week, the central bank said that it was still willing to continue intervening in currency markets, but added that foreign currency operations could go in both directions following a focus on selling since mid-2022 to minimise inflationary risks.
Swiss inflation has stayed within the central bank’s target range of between 0 and 2% since June, backing its decision to keep rates unchanged since its last hike at its quarterly meeting in June.
As the economy slows, markets are pricing for the SNB to begin cutting rates in March.
©2023 Bloomberg L.P.
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