منتدى مركز البورصة السعودي - عرض مشاركة واحدة - Swiss franc plunges as SNB moves to halt rise

08-04-2011, 02:49 PM

FRANKFURT (MarketWatch) -- The Swiss National Bank on Wednesday moved to halt the rise of the Swiss franc, saying the strength of the currency was "threatening the development of the economy and increasing the downside risks to price stability in Switzerland." The EURCHF jumped 1.8% versus the Swiss currency to trade at 1.1061 francs, while the U.S. dollar USDCHF jumped 1.4% to 77.61 centimes. Calling the franc "massively overvalued at present," the SNB said it would move its target for three-month Libor as close to zero as possible, narrowing the taret range to 0% to 0.25% from 0% to 0.75%. The SNB said it will simultaneously "very significantly increase" the supply of liquidity to the Swiss franc money market over the next few days, and that it aims to expand banks' sight deposits at the SNB from around 30 billion Swiss francs to 80 billion Swiss francs. In a statement the central bank said it is "keeping a close watch on developments on the foreign exchange market and will take further measures against the strength of the Swiss franc if necessary