Today Switzerland sell 6-month bonds at an average yield of minus 0.251 percent. At the same time put from the central bank’s ceiling rate of the franc against the euro of 1.20 francs per euro, was again attacked.
Last week limit was bypassed for the first time since the introduction of the ceiling, the same happened yesterday, writes Bloomberg. Capping rate of the franc against the euro was introduced to protect domestic exports, after the panic among investors led to record appreciation of the currency to 1.007 Swiss francs per euro.
“The demand for francs as an asset for asylum is likely to continue because the situation around the euro area and the fact that Switzerland still enjoys a healthy current account balance,” said Thomas Kosterg, economist at Standard Chartered Bank in London.
“The Swiss National Bank (SNB) will be able to protect the restriction of 1.2 francs per euro, but the fact that the level was attacked several times raises questions.” He said.
Today at noon in London franc traded unchanged, about 1.202 francs per euro after yesterday reached 1199 francs per euro – the highest level since September 6 when the restriction was introduced.
Swiss currency cheaper by 0.4% against the dollar to 92.07 centimes to the dollar today