Single Currency Gains against Swiss Franc

As reported at 2:59 p.m. (JST) in Tokyo on March 13, 2009, the Single Currency rose to a 2-month high versus the U.S. Dollar.  The Swiss central bank reduced interest rates yesterday and said it will implement a decision to acquire foreign currencies, thus driving the Euro up by more than 3% and the U.S. Dollar up by more than 2.5% against the Franc.

According to traders, the central bank sold Swiss Francs, thus being the first “key” central bank to use the acquisition of foreign currencyeconomic crisis.  Analysts are questioning whether or not other major countries, such as Japan, will do the same. as a way of addressing deflation in the world-wide

The Euro gained 0.4% versus the Swiss Franc and traded at 1.5364, after jumping to a high of 1.5400.  Against the Japanese Yen, the Swiss Franc dropped to 82.01 Yen.  The U.S. Dollar also gained versus the Swiss Franc and traded at 1.1918 Francs.  The U.S. Dollar was steady against the Japanese Yen and traded at 97.67 Yen.  The Greenback hit a 4-month high of 99.69 Yen, recorded this month, after moving from 87.10 Yen, the lowest price in 13 years, in January.  However, the U.S. Dollar failed to go above 100 Yen as expected by many analysts.  The Euro was steady against the Japanese Yen and traded at 126.06 Yen.