Fri, Mar 22nd 2024
The Swiss Franc takes a hit, reaching yearly lows against the dollar following an unexpected rate cut by the Swiss National Bank.
Following the surprising interest rate cut by the Swiss National Bank (SNB), the Swiss franc has clearly weakened against the major leading currencies. The US dollar gained particularly strongly against the franc.
Late in the evening, the dollar gained more than a centime in value and, at 0.8982, was back at the 90 centime mark.
This was the highest it has been this year. The euro rose somewhat less strongly, climbing to 0.9756 in the evening from 0.9685 in the morning. In the meantime, the euro rose to its highest level since summer 2023.
The SNB has sent out a signal by lowering its key interest rate by 0.25 percentage points. In doing so, it beat the major central banks such as the European Central Bank and the US Fed to the punch.
Those responsible at the Swiss central bank justified the move, which came as a surprise to most experts, with the fact that inflation in Switzerland has been falling for some time. The interest rate cut would also support economic development.
©Keystone/SDA
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