LONDON: The Swiss franc hit a 27-month high against the euro on Friday, buoyed by safe-haven inflows and after the Swiss National Bank on Thursday surprised some by keeping interest rates on hold and resisted preparing the ground for negative rates.
The euro slipped to 1.20085 francs, its lowest since August 2012, taking it closer to the three-year old floor of 1.20 francs per euro imposed by the SNB to ward off deflation.
Traders reported orders to buy the euro at 1.2009 and talk of intervention by the SNB which could limit losses for the single currency.
On Thursday, the SNB kept its target range for three-month Libor at 0.00-0.25 percent, as analysts polled by Reuters had expected.
It also reiterated its commitment to defending the currency peg with interventions and to taking further measures immediately if necessary.
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