Swiss Franc Falls against the Euro on Greece Opinion Polls


Tradervox (Dublin) – After Greek opinion polls showed that pro-bailout party is leading, the euro took a turn and increased against some of its major peers. While the gain might have been limited by concerns about Spain and Italy, the 17-nation currency increased against the Swiss Franc as Swiss government and Swiss National Bank embarked on a program to introduce capital control measures to avoid the strengthening of the franc. The demand for the safety of the Swiss franc was limited as investors tried to trade the Greece opinion polls.

The decline of the franc also came as the President of the Swiss National Bank indicated that the government-led panel was considering the possibility of using capital control measures to curb the advance of the franc against the wailing euro. Such measures are an indication of how much the SNB is willing to go to protect the 1.20 cap it introduced last year after the 17-nation currency dropped due to the debt crisis in Greece. The franc decline against the euro came as opinion polls showed that the New Democracy, which is a pro-bailout party, was leading in six opinion polls conducted on May 26.

On the SNB and Swiss government’s effort to curb the euro advance, a working group has been constituted and it will be focusing of instruments to combat the strengthening of the franc.  The Swiss Franc has declined 2.5 percent in the last six months making it the second worst performer after the euro which has declined by 4.8 percent. The dollar has gained 1.8 percent over the period.

After the reports of the poll, the franc dropped by 0.1 percent against the euro to trade at 1.2019 per euro leaving it a little changed for the month. The Swiss franc gained against the US dollar by 0.2 percent to trade 95.79 centimes per dollar.

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