News Column

Swiss Franc Rises As SNB Holds Monetary Policy Unchanged

June 19, 2014

BRUSSELS (Alliance News) - The Swiss franc strengthened against the other major currencies in the early European session on Thursday after the Swiss National Bank maintained its interest rate close to zero and reaffirmed its currency exchange rate.

In its monetary policy decision, the SNB maintained its minimum exchange rate of CHF 1.20 per euro. The central bank also left its target range for the three-month Libor unchanged at 0.0-0.25%, as expected.

The SNB reiterated that it will continue to enforce the minimum exchange rate with the utmost determination. Further, the bank repeated that it is prepared to purchase foreign currency in unlimited quantities for this purpose, and to take further measures as required if necessary.

The central bank expects the moderate recovery to continue in the coming quarters. For 2014, it again expects a growth rate of around 2%.

SNB Chairman Thomas Jordan will comment on the decision at a press conference later in the day.

The Swiss franc which ended yesterday's deals at 0.8954 against the US dollar strengthened to a 10-day high of 0.8920. On the upside,0.88 is seen as next resistance level for the franc.

The Swiss franc rose to a 6-day high of 1.2165 against the euro, from an early low of 1.2184. If the franc extends its rise, it is likely to find resistance around the 1.20 area.

Having fallen to 1.5235 against the pound and 113.74 against the yen in early deals, the franc climbed to a 1-week high of 1.5167 and a 9-day high of 114.04, respectively. The next possible upside target for the franc lies around 1.50 against the pound and 114.41 against the yen.

Looking ahead, the US weekly jobless claims for the week ended at June 14 and leading indicators for May are due to be released in the New York session.

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Source: Alliance News

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