Friday 16 January 2009

Another Eastern European meltdown?

Recent swiss franc strength has started to court some concern at the Swiss National Bank. Reuters reports SNB board member Thomas Jordan in particular voiced his worries on the swissie’s recent 7 per cent rise against the euro. The move is bad for Switzerland, of course, because the country depends on competitive trade with the rest of Europe.

Accordingly, hints from Jordan that the SNB may be prepared to intervene in markets if needed to stimulate the economy have resulted in some welcome weakness in the franc Thursday and Friday.

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