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Swiss National Bank softens FX intervention stance, franc weakens

EUR/CHF rose to 0.9410 after the SNB left its policy rate at 0%, with the decision following earlier franc intervention messaging changes since June.

Reported · Written up by our desk · Central Banks

European investors weighed two market pressure points in the morning session, as rising oil prices and higher bond yields fed into risk-asset concerns, while currency moves were also in focus.

Forexlive reports the Swiss National Bank kept its policy rate unchanged at 0% at its September meeting as widely expected, but adjusted its language around intervention. The SNB removed wording from June about an “increased willingness” to intervene in the FX market and instead said it is “willing to be active,” signaling a shift in how urgently it needs to lean against franc moves.

The franc weakened on the decision, with EUR/CHF rising from around 0.9380 to 0.9410. Elsewhere in FX, the dollar held strength, with EUR/USD down 0.1% to 1.1370 and USD/JPY up 0.3% to 158.78, as higher Treasury yields continued to support the greenback.

As yields extended higher, Forexlive said the move risked tightening financial conditions through higher discount rates, adding to the session’s broader market pressure.

non-yielding gold fell 0.5% to $4,265 and moved closer to last week’s low amid the same backdrop of higher oil and surging bond yields.

Latest closeGold $4,323.20 ▼1.2%|EUR/USD 1.138 ▼0.6%|USD/JPY 158.21 ▲0.5%

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