SNB's Stance on Franc's Strength

In a recent statement, Swiss National Bank Chairman Martin Schlegel emphasized the central bank's readiness to step into the foreign exchange market to counteract the Swiss franc's significant appreciation. This move comes amid concerns over the potential risks to price stability posed by the currency's strength.

Market Reaction and Current Status

Despite the SNB's warnings, the Swiss franc showed little immediate reaction, holding steady against the US dollar at 1.21527 as of 10:28 am CET. Schlegel's comments highlight the delicate balance central banks must maintain in managing currency values to safeguard economic stability.