UPDATE 1-Swiss franc remains in demand as safe haven says Swiss National Bank’s Maechler

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GENEVA, Nov 11 (Businesshala) – The Swiss franc remains in demand as a safe investment as market uncertainty remains due to the ongoing COVID-19 pandemic, Swiss National Bank governing board member Andrea Machler said on Thursday. said.

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“We are still in an area where the Swiss franc is high,” Machler said at an event in Geneva. “Generally speaking, how is it (the franc) going forward? I don’t know. I don’t know where the Swiss franc is going.”

“The reality is, we continue to have a safe haven currency,” Machler said. “Uncertainties remain high, mainly because of the COVID crisis that remains there.”

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Meckler reiterated the SNB’s commitment to money market intervention to halt the rise of the franc, which recently rose to its highest level against the euro since May 2020.

Modest Swiss inflation, which has risen to around 1.2%, helped offset the franc’s growth and offset the damaging effect of currency strength on Switzerland’s export-oriented economy, she said.

“You’ve seen recently that the Swiss franc has appreciated a lot,” Machler said. “Now if you look at the real exchange rate, it is still higher than 2015.

“This is something that we continue to monitor, and we will continue to do so.”

He said that SNB is committed to buying in the foreign exchange market, where appropriate, seeking maximum impact with minimum intervention.

Buying it with foreign currencies on its investment, however, the SNB sought minimal market impact, Machler said.

Reporting by Paul Carell, Writing by John Reville

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