Off The Wire
Swiss franc hits 33-month high after U.S. watchlist inclusion
LONDON, Jan 14 (Reuters) - The Swiss franc firmed on Tuesday and hit its strongest since April 2017 against the euro, a move that followed the United States’ inclusion of Switzerland on a currency manipulator watchlist.
Analysts were divided as to the reasons for the franc’s move. One said that the U.S. re-inclusion on the watchlist was seen as possibly discouraging the Swiss National Bank from intervening to try and limit the franc’s strength.
Another analyst said that the inclusion had been expected, and instead cited general safe-haven flows.
The euro dropped 0.4% to 1.0769 francs, leaving the Swiss currency at its strongest in almost three years.
Against the dollar too, the franc rose. The dollar was last down 0.4% at 0.9676 francs, although that was some way off the franc’s 16-month high hit on Dec. 31. (Reporting by Yoruk Bacheli Writing by Tommy Reggiori Wilkes)