The Swiss Franc has edged higher against the Euro and US Dollar as the market sees light trading ahead of the start of the two-day US Federal Reserve policy meeting.
Investors are holding back from taking large positions as they await the US Central Bank’s policy statement due on Wednesday. They will be looking for any suggestion or clues over whether the Central Bank will start trimming back its huge quantitative easing measures.
“It’s another waiting day, we have a lot of important data points later in the week so people aren’t going to change positions a lot today, We aren’t expecting any major surprises from the Fed, as (Federal Reserve Chairman Ben) Bernanke has already assured a continuing accommodative monetary policy at least for the foreseeable future” Said, J. Safra Sarasin an economist at Alessandro Bee.
The Swiss franc is a popular safe haven asset for investors. The central bank in 2011 imposed a ceiling on its value of 1.20 francs per euro.
The rise comes despite the Swiss Central Bank revealing that it lost up to 7.28 billion Francs in the first half of the year because of the falling value of gold. The Central Bank said that it lost 13.5 billion francs on its gold holdings. The bank did say however that the bank benefited from the increase in the value of Euro and US Dollar; because of this the Bank was able to make a profit of 5.77 billion Francs in the January-June period.
Current Swiss Franc (CHF) Exchange Rates
Swiss Franc/ Euro Exchange Rate is currently in the region of: 0.8099
Swiss Franc/US Dollar Exchange Rate is currently in the region of: 1.0750
Swiss Franc/ Pound Sterling Exchange Rate is currently in the region of: 0.7007
Swiss Franc/ Australian Dollar Exchange Rate is currently in the region of: 1.1855
(Correct as of 14:30 pm GMT)
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