The Swiss franc fell against the euro and the dollar on Friday after the Swiss National Bank failed to impress markets by repeating its warning the weakening franc could trigger further rate hikes.
Rate increases were likely in the months ahead should growth remain strong and the franc weaken further, the SNB said on Thursday, but analysts said carry traders benefiting from low Swiss rates had already factored that message in.
"The carry trades look back in favour - dollar versus franc is showing signs of recovery above trendline support and euro versus franc has not sustained a break of its three month uptrend - both look to be attempting to resume upmoves," said Commerzbank analyst Karen Jones.
The franc was 0.07 percent weaker against the euro at 1.6566 per euro, still close to a 9-year low at 1.6673 hit shortly after the SNB's decision on June 14 to increase rates by 25 basis points. The franc was 0.09 percent lower against the dollar at 1.232 per dollar.
Comments
Comments are closed for this article.