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Franc Slides to Five-Year Low Versus Dollar Amid SNB Speculation

  • Investors consider if central bank will counteract ECB easing
  • Franc also drops as month-end buying supports the greenback
Updated on

The Swiss franc dropped to the weakest level in five years against the dollar as speculation the European Central Bank is gearing up to boost stimulus led investors to consider whether the Swiss National Bank will respond by intervening to weaken its own currency.

With markets braced for additional ECB easing in December, economists surveyed by Bloomberg this month said the SNB has room to restart major currency purchases if needed to weaken the franc. The SNB abandoned a cap against the euro in January, a week before the ECB announced its quantitative easing plan.