FOREX-Dollar up vs franc as SNB eyed but slips vs euro, yen on data
The U.S. dollar hit a more than two-week high against the Swiss franc on Monday on signs that the Swiss National Bank has intervened to weaken the franc, but moved lower against the euro and yen on disappointing U.S. economic data. The euro also hit a more than two-week high against the franc in the wake of a report from a Swiss newspaper on Sunday stating that the SNB was informally aiming for a rate of 1.05-1.10 francs per euro, citing sources close to the bank. The speculation that the SNB has intervened in the market comes after it shocked markets on Jan. 15 by removing its cap of 1.20 francs per euro, a move which initially sent the Swiss franc skyrocketing against both the euro and the dollar. "The SNB in general feels like the Swiss strength is extremely overdone, and based upon that view, it looks like they're trying to move the market to a level they believe is more correct," said Douglas Borthwick, managing director at Chapdelaine Foreign Exchange in New York.
