Divers due to partial mobilization
Euro to Franc cheaper than ever
The euro came under pressure on Wednesday as Russian action intensified in the Ukraine war. The European single currency fell to the Swiss franc on Wednesday afternoon at CHF 0.95235, the lowest level in its history.
The euro slipped against the franc on Wednesday to its lowest rate ever. The new low is now 0.95235 francs. (Iconic image)
The previous all-time low of 0.95305 francs was reached last Thursday. Blame for the diver was the announcement of partial mobilization by Russian President Vladimir Putin, whose army had recently suffered serious setbacks in the Ukraine war. Before this announcement, the euro had been worth more than 96 centimes.
In addition to the troop reinforcements, Putin announced that he would support so-called “referendums” in the occupied areas of Ukraine about joining Russia. As a result, the already poor relations between Russia and the West are likely to deteriorate further.
Euro still weaker after SNB decision?
The slide in the euro-franc exchange rate is not likely to stop any time soon, especially as the Swiss National Bank (SNB) is expecting a significant rate hike of 0.75 percentage points for tomorrow, Thursday. According to foreign exchange experts, this step should strengthen the role of the franc as a safe currency haven.
The markets are eagerly awaiting the interest rate decision by the US Federal Reserve on Wednesday evening. In view of the high level of inflation, another strong interest rate hike of 0.75 percentage points is expected. Even an even bigger step is not entirely ruled out in the markets. According to Dekabank, the market reaction also depends on the comments by central bank chief Jerome Powell and on the revision of the economic forecasts and the projections for the key interest rates. (SDA)