The latest injection of liquidity into the money markets of the Swiss National Bank (SNB) has had the opposite effect to the intended one. In fact, the Swiss currency continues its upward run: therefore both the euro and the dollar have fallen against the franc. At around 10.00 am, the euro dropped 1,32%, after having managed to drop 2%, and traded at 1,1325 francs. While the American currency yields 1,25% and trades at 0,7870 francs, which has yielded up to 1,78%.
This morning the SNB had launched new measures to counter the excessive appreciation of the franc, increasing sight deposits from 120 to 200 billion Swiss francs, through swap operations on currencies. But the markets were expecting direct operations in Forex or at least a statement on the possible connection to the euro which did not take place.
The appreciation of the franc has strong repercussions in Eastern Europe, where many countries (such as Poland e Hungary) have a large part of public and private debt denominated in the Swiss currency. Japan is also concerned that the increase in the franc could push the I raise the yen, forcing the Japanese authorities to intervene.
