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Jittery markets drive safe-haven Swiss franc to 6-week high

Published 24/02/2016, 10:13
© Reuters. Swiss 1,000-franc notes are seen in this picture illustration
EUR/CHF
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LONDON (Reuters) - The Swiss franc hit its strongest in six weeks against the euro on Wednesday, a day after the head of Switzerland's central bank warned of the limits of monetary policy and as subdued investor risk appetite boosted demand for perceived safe havens.

Swiss National Bank chief Thomas Jordan said on Tuesday that loose monetary policy would not be enough to shield countries from global economic problems. Earlier this month he said the SNB could push interest rates deeper into negative territory, warning that market turmoil could revive the franc's traditional role as a safe-haven currency.

That safe-haven demand was driven on Wednesday by a fall in oil prices after Saudi Arabia said it would not cut production.

© Reuters. Swiss 1,000-franc notes are seen in this picture illustration

The Swiss franc strengthened 0.2 percent against the euro to trade at 1.09005 francs (EURCHF=EBS), its strongest since Jan 13. It also gained 0.1 percent against the dollar .

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