The Swiss franc fell sharply after an unexpected interest rate cut by the central bank. The currency fell to its weakest level in more than two weeks, reaching 0.9344 per euro.
The franc stood out as one of the G-10’s best-performing currencies this year, behind the pound.
The central bank’s decision exceeded the average forecast of a 25 basis point cut, according to a Bloomberg survey. The larger-than-expected cut is seen by analysts as a measure to curb the franc’s recent appreciation in the coming months.
Jordan Rochester, head of macro strategy at Mizuho (NYSE:), commented on the impact of the rate cut, saying: “After today’s decision, it is difficult to argue for a stronger CHF.”
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