Franc Gains as Central Bank Refrains From Currency Target
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The franc strengthened after the Swiss central bank stopped short of announcing a target rate or temporary peg to the euro in its third attempt in as many weeks to drive down the currency.
The Swiss National Bank will boost liquidity to the money market, expanding banks’ sight deposits to 200 billion francs ($253 billion) from 120 billion francs, it said in a statement today. The bank will also continue to buy SNB Bills and use foreign-exchange swap transactions. The franc surged as much as 2.1 percent against the euro before paring gains and trading at 1.1413 at 1:15 p.m. in Zurich.