LONDON: The Swiss franc eased to a nine-day low against the euro on Friday, with dealers citing market talk that the Swiss National Bank may be intervening to weaken the currency as it hovers close to a three-year old cap.
The euro rose 0.1 percent to 1.2033 francs, its highest level in over a week.
"Price action over the last few days suggests to us that the Swiss National Bank might have started to purchase euro/Swiss franc to defend the 1.20 floor," Beat Siegenthaler, a currency strategist at UBS, one of Switzerland's two big international banks, said in a note.
"Next Monday's weekly sight deposit numbers should give the market the first indication whether these suspicions are true and to what extent." The franc hit a 26-month high this week ahead of a Nov. 30 referendum on the issue of gold reserves that the SNB says, if passed, would impede its ability to conduct monetary policy.
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