The Swiss franc fell against the euro to the weakest level in a month amid speculation the central bank will shift its cap on the exchange rate to depreciate the currency.
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.