16th August 2011
Fresh speculation about the future of the Swiss franc sent the currency tumbling to a two-week low against the euro and the dollar on Monday (August 15th).
The Swiss National Bank (SNB) is rumoured to be considering more aggressive measures to curb the strength of the money in forex trading, such as setting a target level against the euro.
A senior official at the central bank refused to rule out such a move last week, while Swiss newspaper SonntagsZeitung reported that a lower limit for the euro/Swiss franc pair will soon be set.
Manuel Oliveri, currency strategist at UBS, told Reuters: "The market now sees the possibility that the SNB has a plan and this is making people nervous about the Swiss franc."
The euro climbed 1.6 per cent to hit 1.1266 Swiss francs on Monday, having reached 1.1458 Swiss francs in earlier trading.
Traditionally viewed as a safe haven by investors in fx trading, the Swiss currency's soaring value has seen the SNB facing calls for direct intervention in recent weeks.
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