Swiss Franc Drops After SNB Rate Hike
(RTTNews) - The Swiss franc fell against its major rivals in the European session on Thursday, as the Swiss National Bank continued its policy tightening but at a slower pace as expected.
Switzerland's central bank hiked its policy rate by 25 basis points to 1.75 percent.
"It cannot be ruled out that additional rises in the SNB policy rate will be necessary to ensure price stability over the medium term," the bank repeated.
The central bank reiterated that it remains willing to be active in the foreign exchange market as necessary. In the current situation, the bank said it is focused on selling foreign currency.
The franc dropped to 158.29 against the yen, off an early multi-year high of 159.20. The currency may locate support around the 128.00 level.
The franc touched 0.9840 against the euro, setting a 1-1/2-month low. If the franc drops further, it may find support around the 1.00 area.
The franc weakened to 1.1435 against the pound and 0.8954 against the greenback, from an early 9-day high of 1.1356 and a 6-day high of 0.8906, respectively. The next possible support for the currency is seen around 1.21 against the pound and 0.92 against the greenback.
Looking ahead, the Bank of England's monetary policy announcement is due at 7:00 am ET. The BoE is widely expected to raise its key rate by 25 basis points to 4.75 percent from 4.50 percent.
U.S. weekly jobless claims for the week ended June 17 and existing home sales for May will be out in the New York session.
Eurozone flash consumer sentiment index for June is set for release at 10:00 am ET.
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