The franc slid as much as 0.2 percent to 1.2058 per euro, the weakest since Aug. 6, and was at 1.2052 per euro at 6:24 a.m. London time. It was little changed at 95.65 centimes per U.S. dollar. The Swiss National Bank set its limit for the franc at 1.20 per euro a year ago to protect the nation’s economy.
“With continued weak activity and inflation data, speculation has been rife in the last 24 hours of a lift in the floor to around 1.22,” francs per euro, Sue Trinh, a senior currency strategist at Royal Bank of Canada in Hong Kong, wrote in a note to clients today. The franc is “vulnerable to a selloff back to 1.201 should the rumors, speculation prove unfounded,” she wrote.
SNB spokesman Walter Meier declined to comment when called by Bloomberg News.
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