The Swiss franc tumbled against the euro, headed for its biggest three-day decline since the European currency’s 1999 debut on speculation Switzerland will take further action to counter recent gains.
The franc slid for a fourth day versus the dollar after the SonntagsZeitung newspaper said the Swiss government and central bank are in “intense” talks over setting a target for their currency. The yen dropped the most in a week against the euro after Japan indicated it’s ready to intervene in foreign- exchange markets again. Sweden’s krona advanced against all its 16 most-traded peers even as industrial production fell in June.
“Given the strength of the franc, they’re trying to think of everything and everything,” said Brian Kim, a currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit in Stamford, Connecticut. “It’s tough to say this point if whatever actions they take can reverse the safe-haven flows.”
The franc tumbled 2.5 percent to 1.1362 per euro at 1:26 p.m. in New York, from 1.1086 on Aug. 12, after rallying to a record 1.0075 on Aug. 9. The Swiss currency has slid as much as 11.25 percent over the past three days, the biggest intraday drop since January 1999. The franc fell 1.1 percent to 78.67 centimes per dollar after advancing to a record 70.71 centimes on Aug. 9.
The krona rose 1.7 percent against the dollar to 6.4051. It advanced 0.3 percent to 9.2473 per euro.
The franc slid for a fourth day versus the dollar after the SonntagsZeitung newspaper said the Swiss government and central bank are in “intense” talks over setting a target for their currency. The yen dropped the most in a week against the euro after Japan indicated it’s ready to intervene in foreign- exchange markets again. Sweden’s krona advanced against all its 16 most-traded peers even as industrial production fell in June.
“Given the strength of the franc, they’re trying to think of everything and everything,” said Brian Kim, a currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit in Stamford, Connecticut. “It’s tough to say this point if whatever actions they take can reverse the safe-haven flows.”
The franc tumbled 2.5 percent to 1.1362 per euro at 1:26 p.m. in New York, from 1.1086 on Aug. 12, after rallying to a record 1.0075 on Aug. 9. The Swiss currency has slid as much as 11.25 percent over the past three days, the biggest intraday drop since January 1999. The franc fell 1.1 percent to 78.67 centimes per dollar after advancing to a record 70.71 centimes on Aug. 9.
The krona rose 1.7 percent against the dollar to 6.4051. It advanced 0.3 percent to 9.2473 per euro.
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