The Swiss franc suddenly fell after an unexpected interest rate cut by the central bank. The currency fell to its weakest level in more than two weeks, reaching 0.9344 per euro.
The franc has stood out this year as one of the best currencies among the G-10, second only to the pound.
The central bank's decision exceeded the median forecast of a 25 basis point cut, as reported by a Bloomberg survey. The larger-than-expected cut is seen by analysts as a move to curb the franc's recent appreciation in the coming months.
Jordan Rochester, head of macro strategy at Mizuho (NYSE:), commenting on the impact of the rate cut, saying, “After today's decision it is hard to argue for a stronger CHF.”
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