The Swiss franc appreciated against the euro for the first time in three days as investors opted for its relative safety on the chance weekend negotiations on Greece fail to result in an agreement.
The franc advanced against all 16 of its major peers, even as the indebted nation’s creditors were said to have offered to unlock aid of as much as 15.5 billion euros ($17.3 billion). Concerns that a final deal will still prove elusive helped the franc recover from a two-week low reached Thursday as Swiss National Bank President Thomas Jordan said the currency is overvalued and officials may intervene to cap its ascent.
“I would put moves in euro-franc mainly to hedges going into the weekend with the key discussions on Greece,” said Michael Sneyd, a foreign-exchange strategist at BNP Paribas SA in London. “The moves in the franc are basically a reversal of what we had yesterday following comments from SNB’s Jordan. People realized that, actually, the comments didn’t really signal a change of stance from the SNB.”
The franc rose 0.7 percent to 1.04204 per euro as of 3:52 p.m. London time, extending its advance after the state-run Athens News Agency reported that Greece rejected the new proposal from creditors.
Switzerland’s currency reached 1.05464 on Thursday, its weakest level since June 11. Sneyd said it may strengthen toward 1.025 if, come Monday, a Greek deal remains elusive.