Swiss Franc hits the lowest point since Jan. 2015 against Polish Zloty19 October 2017
On Wednesday, 18th October, the exchange rate of CHF/PLN hit the lowest point in 33 months as it got below 3.66 zlotys at some point of the day. The downfall started on Tuesday, 17th, with buy Swiss Franc price being below 3.67 zlotys at some point during daily trading.
Lowest point since more than 2 years
Tuesday saw the exchange rate CHF/PLN starting at 3.68 zlotys, which was 0.01 zlotys more than on Monday’s closing. But during daily trading, around 3:00 pm, the rate fell below 3.67 zlotys, which was a bit less than in August and September, in most recent crisis moments. Wednesday wasn’t any better. At 2:55 pm on international market to buy Swiss Franc one had to pay only 3.66 zlotys, another 0.01 zlotys less than on Tuesday’s closing of trading. Before, during daily trading, at some point the exchange rate CHF/PLN was at 3.6564 zlotys. Going below 3.66 zlotys meant that the rate hit the lowest point in 33 months, since January 2015. In that time, Swiss National Bank abandoned policy of defending the minimal exchange rate of EUR/CHF and adopted a quasi-fixed rate instead. That decision prompted the exchange rate of CHF/PLN to rocket for a moment to 4.3 zlotys from 3.5 zlotys and resulted in panic in many Polish houses as around 750,000 people in Poland have mortgage credit denominated in Swiss Francs. After a while the situation went back to stability, but ever since that time buying Swiss Francs for Polish Zlotys hasn’t been as cheap as before Swiss National Bank’s decision. The Swiss Franc has also not been doing good as compared to the euro this year. Since the beginning of 2017, it has lost 7.2% against the common European currency. Since January the exchange rate EUR/CHF raised from 1.06 to more than 1.15.
Good moods on financial market
What are the reasons for not-so-good exchange rate of CHF against PLN and generally weaker Swiss Francs as compared to Euros? Urge for CHF/PLN rate came from EUR/CHF lower rate that has also been observed this week, especially on Wednesday. It looks a good moment has arrived to buy Swiss Francs generally on multinational markets. Swiss National Bank even went as so far as to admit that Swiss Franc is not “overpriced” anymore, as it was referred to before, but just “highly valued”. Ironically, what is harming the CHF exchange rate against EUR, USD, JPY or PLN, is good mood of investors all over the currency market and stocks. American stocks are braking records with nearly every single session. Also the German stock exchange DAX has reached the historical maximum as lately as on Wednesday, 18th October. The Japanese stock is revamping from its issues and its index Nikkei225 has raised to highest point since 1996 on October the 13th. Investors are eager to spend money and they don’t bother much about risk. Since it all look so bright in financial world, there is no point to run for cover in so-called “safe havens”. And Swiss Franc, together with gold, is considered to be one of the safest haven out there. In these optimistic days, that reputation is like burden that makes CHF loose against other currencies.