Unexpected SNB Intervention

On Wednesday the USD rose highly against the Swiss franc when traders said the SNB was intervening by selling the franc for dollars and euros.The dollar still remained the biggest beneficiary of the intervention reports, on which the SNB refused to make any comments.

The SNB intervention reports also distracted the foreign exchange markets from the fall of the European Central Bank's tender that was first for a year which was its biggest-ever liquidity injection and which weighed the position of the euro.

Analysts admit that the SNB has stepped up its approach and it has enlarged its intervention scope. The US dollar rose two percent against the Swiss franc to reach a high of 1.0907 francs from around 1.066 francs before the reports emerged CHF. Traders observed the SNB buying dollars around 1.0880 francs.