WASHINGTON (AP) - The Swiss franc is falling against other major currencies Tuesday on speculation that the Swiss central bank might weaken the currency against the euro.
Traders dumped francs in favor of euros and dollars. They cited two published reports that the Swiss National Bank might peg the euro at 1.25 Swiss franc, up from the current rate of 1.20 Swiss franc. That would make the franc less valuable relative to the euro, the dollar and other currencies.
The SNB wants to limit the franc's strength to protect Swiss companies. Ratcheting that up to 1.25 Swiss franc would provide additional help for companies that are struggling because of the franc's continued strength. A too-strong franc hurts Swiss exporters by making their goods appear more expensive to foreign buyers.
The franc surged this summer as traders dumped euros and dollars. Weak economic news from the U.S., Germany and France made their currencies less attractive. The franc is seen as a safe bet because of Switzerland's relatively strong, stable economy.
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