The franc fell against the euro as rising stock prices gave investors confidence to seek higher-yielding alternatives to the Swiss currency elsewhere in Europe.
The franc, which strengthened to a record against the euro last month, declined against 13 of its 16 most-traded peers today. The pan-European Stoxx Europe 600 Index climbed 0.8 percent, boosted by better-than-expected earnings from companies including France’s Dassault Systemes SA and Italy’s Eni SpA, while Switzerland’s key stock index rose to a five-month high.
“Swiss investors have started to reallocate funds out of Switzerland again very strongly,” said Manuel Oliveri, a foreign-exchange strategist at UBS AG in Zurich. “You get more for your money because of the strong Swiss franc appreciation over the last few months. This has actually led to some weakness against the euro.”
The franc depreciated 0.3 percent to 1.3684 per euro at 2:45 p.m. in London. It yesterday reached 1.3703, its weakest level since Aug. 11. The currency gained 0.4 percent to 98.69 centimes per dollar.
The Swiss franc has climbed 2.9 percent this year against a basket of currencies, according to Bloomberg Correlation-Weighted Currency Indexes. It has declined 1.9 percent in the past month.