Swiss PMI soars to highest in over three years

• Swiss PMI rises to 65.5 in March, beats forecasts
• Index now at highest level since Nov 2006

ZURICH, April 1 (Reuters) - The upturn in Switzerland's manufacturing sector gathered even more pace in March, underscoring the strength of the Alpine state's economic recovery, data showed on Tuesday.

The Swiss purchasing managers' index soared to a seasonally adjusted 65.5 points in March, its highest level since November 2006, from 57.4 points in the previous month.

The index posted the strongest rise since the survey began in 1995, according to Credit Suisse which publishes the PMI. The jump beat even the most optimistic analysts' expectations and is the latest set of data to highlight the robust recovery of the Swiss economy, which emerged from its worst recession in decades in the third-quarter of last year.

"For the first time the PMI exceeded the figures recorded amid lively economic activity around the turn of the millennium (mean 60.6 points) and those of the boom that lasted until mid-2008 (mean 61.4)."

The Swiss franc rose as high as 1.4187 per euro after the data was released, its strongest since the euro was launched in 1999. The backlog of orders component posted its sharpest-ever rise, climbing to an all-time high, while employment grew for the first time in 17 months, pointing to a possible turnaround in the labour market, the Credit Suisse analysts said.
The Swiss National Bank raised its 2010 growth forecasts at its March meeting and many analysts expect the central bank to hike rates in the second half of this year.

Switzerland's leading growth barometer rose to a near-2-1/2 year high in March, showing the economy was set to grow at a solid pace as banks and manufacturers continue to recover.

Reporting by Katie Reid; Editing by Toby Chopra

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.