Swiss Franc Weakens Versus Euro Before Central Bank Decision

The franc fell a second day against the euro before the Swiss central bank announces its decisions on the nation’s currency limit and benchmark interest rate.

The Swiss National Bank will keep the franc ceiling at 1.20 per euro when policy makers meet for their quarterly assessment, according to all 10 economists in a Bloomberg News survey. The SNB will also leave the key interest rate at zero, a separate survey showed.

The central bank introduced the currency ceiling on Sept. 6, 2011, after the franc’s surge to near parity with the euro raised deflation threats and eroded export competitiveness. Protecting it has boosted the SNB’s currency reserves to 418 billion francs ($446 billion), about 73 percent of Swiss gross domestic product.

The franc fell 0.1 percent to 1.2098 per euro at 8:05 a.m. London time after dropping to 1.2155 on Sept. 7, the weakest level since Jan. 9. The Swiss currency was little changed at 93.67 centimes per dollar.

To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net

To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net

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