LONDON: The Swiss franc rose to a one-week high against the euro on Thursday, after the Swiss National Bank refrained from steps to weaken the currency, confounding some investors' expectations of a cut in deposit rates to negative.
The euro fell to 1.2065 francs, down 0.2 percent on the day, having traded at 1.2112 before the SNB announcement. The dollar fell 0.4 percent to 0.9375 francs, having traded at around 0.9406 beforehand.
The SNB kept its interest rate target unchanged and the euro/Swiss franc floor unchanged at 1.20 francs per euro. It said it was ready to intervene in the currency market and take further measures immediately if necessary.
An interest rate cut, including taking the deposit rate deeper into negative territory, by the European Central Bank two weeks ago, as well a new scheme to push money into the flagging euro zone economy, had put renewed pressure on the SNB efforts to stem the franc's strength.
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