The Swiss franc shadowed the euro lower against the dollar on Friday after US data showed that the United States economy was showing signs of slowing, curbing risk appetite and adding to demand for the safe haven greenback. The franc has moved in lockstep with the euro since September, when the Swiss National Bank imposed a 1.20 francs per euro cap to prevent the soaring franc from decimating Swiss exports and pushing the country into recession.
The franc fell 0.3 percent against the dollar compared to the New York close to trade at 0.9081 francs to the dollar. The franc was steady against the euro at 1.2056 francs per euro. "We think the Swissie will remain in a very tight range for a period. In the medium to longer term we see an upmove to around 1.25 due to easing of tensions in the euro zone and the reversal of safe haven flows," said Sven Schubert, head of foreign exchange research at Vontobel.
Comments
Comments are closed.