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EUR CHF exchange rate falls under 1.067

EUR CHF exchange rate falls under 1.067

03 February 2020

The EUR CHF exchange rate continues to fall and has reached a new low in the past three years. The Swiss National Bank continues to try to counter this with negative interest rates and interventions on the foreign exchange market.

Less than two years ago, the Swiss franc stood at 1.20, the highest level since then. Today the euro exchange rate has reached 1,067. This has been the cheapest euro exchange rate for cross-border commuters in three years. The Swiss National Bank's interventions in January prevented an even lower euro exchange rate. Can the Swiss National Bank continue to oppose this?

There has been a lot of news lately that has had a negative impact on the euro exchange rate. These include tensions in the Middle East, the trade dispute with China, Corona Virus, and not least Brexit. At the moment it seems that the only way the National Bank can counter this is to continue to buy euro. According to experts, it is unlikely that the National Bank will decide to push the already very low negative interest rates further down.

If the Swiss National Bank wants to buy euro, it must first increase the amount of Swiss strong ones. After that, she can intervene with the purchase of euros on the foreign exchange market. However, this approach is strongly criticized by the United States. The United States thus implies that Switzerland manipulates the Swiss franc exchange rate. This is one of the reasons why it is difficult to estimate how the SNB will proceed.

exchangemarket.ch
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