Lowest Euro Swiss Franc Exchange Rate Since 201519 November 2021
The euro-franc exchange rate has reached its lowest level in the last six years. The reason for this is primarily a new wave of Covid-19 that is motivating investors to buy Swiss francs.
Euro franc rate below 1.05
The Swiss franc exchange rate versus the euro has hit the lowest point since 2015 as new wave of Covid-19 infections is spreading through Europe. On Thursday the CHF exchange rate has gone down by 0.1%, at some point even hitting though the psychological resistance threshold of 1.05 versus the EUR. It meant the EUR/CHF exchange rate was at some point at lowest point since July 2015. Later on, the trend reversed and the rate headed higher. The reason for such big gains of CHF is the attitude of investors who are now eager to buy Swiss francs and other safe-haven assets. Europe is yet again on the brink of very high wave of Covid-19 infections. The region’s largest economy, Germany, has reported record number of new infections per 100,000 inhabitants. Meanwhile Austria is going into complete lockdown imposed for people who haven’t been vaccinated.
Will the euro-franc exchange rate continue to fall?
Swiss franc is heading for a fourth year of gains versus the euro. Despite some contrary opinions, it continues to be a safe-haven currency, as recently stated Swiss National Bank Governing Board Member Andrea Maechler. If Swiss currency gets even stronger, the euro-franc exchange can move below 1.05 versus the eurozone currency. According to experts, that could provoke some stronger interventions from the Swiss National Bank. The central bank tends to buy foreign currencies to stop the Swiss Franc from getting too strong and keep inflation within a target range. Whether the SNB decides to intervene now, after the high gains recorded this week, will show up in the sight deposit statistics in next weeks. The SNB is not giving public information on interventions it makes. On the other side the very good Swiss franc exchange rate is sparing the bigger spike in inflation in Switzerland, as other countries are observing higher inflation. The average price rise is still within range of 2%, which is a stable situation according to the SNB.