Swiss franc hits new record high against euro – rts.ch

The franc once again broke through the floor against the euro, reaching an all-time high against the single European currency on Monday. The trend will continue.

At 1:01 p.m., Swiss currency was trading at 0.9644 francs per euro after falling to 0.9634 EUR/CHF shortly after noon. Since the beginning of the year, the franc has continued to appreciate against the euro, with the currency pair still trading at the beginning of January at 1.038 EUR/CHF.

Analysts at the Cantonal Bank of Zurich expect a rate of around 0.96 euro/franc over a three-month horizon.

>> See also the evolution of the franc against the euro over 10 years

Change in monetary policy

This trend is accentuated by recent changes in Swiss monetary policy. On June 16, the Swiss National Bank (SNB) raised its main key rate to -0.25% (it had been -0.75% since January 2015 and the abandonment of the floor rate at 1.20 francs ).

This decision strengthens the franc, because it makes investments in the national currency more attractive. A positive point in the fight against inflation (expected at 2.8% for 2022), which is now the priority of the SNB. A stronger franc effectively limits the cost of imported products, which are the most affected by the rise in prices.

“If the franc were to appreciate excessively, we would be willing to buy foreign currencies,” however, assured the chairman of the general management Thomas Jordan on June 16.

>> Read about it: The SNB raises its key rate and raises its inflation forecasts

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