Swiss Franc Faces Further Falls After SNB Decision
Dow Jones
Sep 25
0824 GMT - The Swiss franc could fall further after the Swiss National Bank failed to push back against a weaker currency and send strong signals about possible future rate increases, MUFG Bank's Derek Halpenny says in a note. The SNB failed to convey concerns about inflation risks and removed its reference to an "increased willingness" for currency interventions at Thursday's meeting, he says. This opens scope for renewed franc selling, particularly if global yields continue rising, he says. "Investors now are effectively charged a bigger premium for using the franc as a safe haven and for now investors do not believe that premium is worth paying." The euro rises 0.3% to 0.9444 francs. It hit a 17-month high of 0.9480 francs last week, LSEG data show.
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