Swiss Franc Weakens Below Key Level as BlackRock Stays Short
- Currency closer to fair value now versus euro, MUFG says
- Decline likely to take some pressure off policy makers: ING
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The franc weakened past 1.20 per euro for the first time since the Swiss National Bank removed its cap on the currency, providing relief to the nation’s policy makers who have been battling an overvalued exchange rate for the past decade.
The Swiss currency fell as much as 0.13% to 1.2001 per euro, its weakest since January 2015, when the SNB shocked currency markets with its decision to discard the 1.2000 cap. Earlier Thursday, Bloomberg reported that BlackRock Inc. is betting that the franc will extend this month’s worst performance among Group-of-10 currencies.