© Reuters. A waitress presented a plate with various swiss Franc coins and banknotes in this photo illustration at a restaurant in Zurich
By Ritvik Carvalho
LONDON (Reuters) — The Swiss franc fell to its lowest level in two years against the euro Tuesday, as a relative calm, North Korea has relaxed a demand for perceived safe-haven currencies.
The swiss franc, which tends to gain in times of crisis, fell as much as half a percent to 1.1565 swiss francs for a euro in London trade (EURCHF=). That was its lowest level since January. 15, 2015, when the Swiss national bank dropped the franc’s cap against the euro.
In a movement that is only punctuated by short-term spikes on geopolitical tensions, the Swiss currency has weakened more than 8 percent against the euro this year.
That has prompted the Swiss National Bank last week to temper his point of view of the free-evaluation.
The central bank has dropped its nearly three-year-old mantra that the swiss franc has been «significantly more value», instead of saying that the currency remained «very much appreciated».
But analysts have said the change of language should not be taken as heralding a departure from the SNB’s ultra-loose monetary policy. The central bank kept its interest rates negative.
«(The SNB) in no hurry to tighten policy, thus, with central banks like the European Central Bank (ECB) and the BoE (Bank of England) last week to move closer to tightening policy, it is starting to feed through a downward pressure on the Swiss franc,» said Lee Hardman, currency strategist with MUFG.