Swiss Franc Weakens Sharply; SNB Has No Comment

The Swiss franc has weakened sharply against other major currencies

The Swiss franc has weakened sharply against other major currencies several hours after the Swiss National Bank said Thursday that it would intervene to stop an irrational rise in the franc against the euro. Asked about the franc's weakening, a spokesman for the SNB said he has no comment.

The SNB left key interest rates on hold at 0.25% earlier Thursday.

By 1335 GMT, the euro was trading at CHF1.5115, according to EBS, up from a post-March 12 intervention low of CHF1.5006 earlier in the trading session. The session high was CHF1.5140.

The SNB last intervened in the currency markets in March, when it sold the Swiss franc to push the euro up from the CHF1.48 area to over CHF1.53.

The Swiss National Bank doesn't have a fixed threshold for intervention in foreign-exchange markets to prevent the franc from rising against the euro, Thomas Jordan, a member of the central bank's policy-setting directorate, said earlier Thursday.

Nonetheless, traders have been keeping a close eye on the Swiss franc, with the euro trading close to the CHF1.50 point in recent days.

The safe-haven Swiss franc has been climbing of late due to renewed fears among investors about the global economy.

Swiss authorities are concerned about the strength of their currency

Swiss authorities are concerned about the strength of their currency because it could reduce the country's exports and increase the risk of deflation. Traders said the Bank for International Settlements sold Swiss francs on behalf of the SNB. The BIS declined to comment.