SNB Held Off Currency Interventions Last Week, Data Suggest
SNB Held Off Currency Interventions Last Week, Data Suggest
(Bloomberg) --
Swiss National Bank sight deposits fell for the first time in seven weeks, suggesting the central bank has scaled back interventions to weaken the franc.
Sight deposits, considered an early indicator of SNB market activity, declined 154 million francs ($155 billion) last week. They had risen by 2.5 billion francs the previous week, and 3.8 billion francs the period before that.
The haven currency has rallied in recent months due to investor unease about the global economy and the prospect of European Central Bank monetary easing. It weakened 0.4% against the euro last week, though it strengthened again on Monday, appreciating 0.2% to 1.08846.
The SNB declined to comment on the changes in sight deposits.
The SNB is using a combination of negative interest rates plus a pledge to wage interventions to keep the franc in check. Speaking in Lausanne last week, SNB Governing Board Member Andrea Maechler said the decision to intervene was “very much a question of context” and required a cost-benefit analysis.
To contact the reporter on this story: Catherine Bosley in Zurich at cbosley1@bloomberg.net
To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Zoe Schneeweiss
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