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Swiss franc hit 5-mth low vs euro, expectations of more SNB action grow
[LONDON] Swiss franc fell to its lowest in five months against the euro on Thursday, as investors cut positions after recent data showed that Switzerland was mired in deflation added to pressure on the central bank to ease monetary policy further.
Traders said with the Greek debt crisis also moving onto the backburner, safe-haven inflows which have underpinned the franc in recent months, were ebbing. Added to it, the Swiss National Bank has been intervening in thin trading conditions to drive down the franc, traders said.
The euro rose 0.3 per cent to 1.0701 francs, its highest since March 10, on trading platform EBS. The dollar, too, was 0.2 per cent higher at 0.9810 francs, having hit a high of 0.9822 francs on Wednesday, its highest since mid-April.