Franc Tumbles as SNB Subjects More Deposits to Negative Rates
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Switzerland’s franc dropped the most in more than two months against the euro after the nation’s central bank said it will expand the number of sight-deposit accounts that are subject to negative interest rates.
The franc weakened against all 16 of its major peers after the decision, which makes holding the currency in those accounts more unattractive. The Swiss National Bank announced the measures, which follow criticism that public institutions were being shielded from the charge, in a statement Wednesday. UBS Group AG described the move as a “very marginal” step.