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The Swiss National Bank (SNB) logo is pictured on its building in Bern June 17, 2021. — Reuters pic
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ZURICH, March 7 — The Swiss National Bank repeated today its pledge to intervene on the currency markets after safe-haven inflows briefly pushed the Swiss franc above parity with the euro.
“The Swiss franc is currently sought after as a refuge currency, along with the US dollar and the yen,” the central bank said in a statement.
“The Swiss franc continues to be highly valued,” it added. “The SNB remains prepared to intervene in the foreign exchange market if necessary.”
The euro/franc exchange rate fell to 0.9910 in Asia overnight, as investors sought refuge in the currency due to the conflict in Ukraine. The valuation is the highest level for the franc since January 2015 when the Swiss central bank scrapped its peg to the euro.
The SNB said the increased valuation also recognised the inflation differentials between Switzerland and other countries.
Swiss consumer price inflation rose to a higher-than-expected 2.2 per cent in February, its highest level since 2008, although this remained below the 5.8 per cent level in the neighbouring eurozone, Switzerland’s biggest export market. Read full storyRead full story
The SNB today said it said it looked at the overall currency situation rather than individual currency pairs.
The central bank is due to give its next monetary policy update on March 24. — Reuters