Swiss franc goes down on SNB intervention to stem revenues
On Friday, the Swiss franc rebounded from nearly one-year peaks against the common currency after the Swiss National Bank officially confirmed it was intervening in the FX market with the only purpose to weaken the national currency.
The currency pair EUR/CHF last traded at 1.0842, showing a 0.6% slump – the greatest dip since July 2015. The sink was caused by the UK’s decision to break up with the European bloc on the Jun 23 referendum, the so-called Brexit.
The traditional safe haven asset, franc, that tends to be sought out by traders in times of financial instability, soared as the financial markets struggled to digest the Brexit’s implications.
Great Britain voted by a substantial margin to leave the European Union. To be exact, the Leave side managed to gain up to 52%, while the opposite side scored 48%.
Northern Ireland, Scotland and London voted mostly for remain, while Wales as well as the UK outside London strongly supported Brexit.