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Someone who understands this needed!
dandy-candy
Posts: 2,214 Forumite
http://www.bloomberg.com/apps/news?pid=20601101&sid=aGPInr2.E4KU&refer=japan
Quote 1: The franc plunged against all of its major counterparts as the Swiss National Bank began buying currencies and lowered its target lending rate to 0.25 percent.
“The SNB has unleashed a hail of bullets against the franc,” said Todd Elmer, a currency strategist at Citigroup Global Markets Inc. in New York. “It’s getting crushed here.”
Quote 2:
‘Tremendous Pressure’
“The economy is under tremendous pressure because of the appreciation of the franc,” said Brian Kim, a currency strategist at UBS AG in Stamford, Connecticut. “A strong currency is hampering their recovery.”
Sorry if this is a daft question but in quote 1 it says the Swiss franc has plunged, then quote 2 says it has appreciated and is strong? Can someone explain what this article is saying and why it's bad news for the Swiss?
Quote 1: The franc plunged against all of its major counterparts as the Swiss National Bank began buying currencies and lowered its target lending rate to 0.25 percent.
“The SNB has unleashed a hail of bullets against the franc,” said Todd Elmer, a currency strategist at Citigroup Global Markets Inc. in New York. “It’s getting crushed here.”
Quote 2:
‘Tremendous Pressure’
“The economy is under tremendous pressure because of the appreciation of the franc,” said Brian Kim, a currency strategist at UBS AG in Stamford, Connecticut. “A strong currency is hampering their recovery.”
Sorry if this is a daft question but in quote 1 it says the Swiss franc has plunged, then quote 2 says it has appreciated and is strong? Can someone explain what this article is saying and why it's bad news for the Swiss?
0
Comments
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I read it that quote 2 was the position before today.
So quote 1 is the result of what they are doing to "put it right".
"The Swiss National Bank is “implementing this intention” to buy foreign currency to weaken the franc,"
= Deliberate policy to stop the past strength hindering exports, or sucking in imports to create an imbalance, I guess.0 -
The Cannon is spot on........
The Swussy has been appreciating for quite a while, as it is seen by many as a 'safe haven' of sorts.
The SNB rarely says much, or does much, but when they do intevene in the markets they are usually successful in their aims.'In nature, there are neither rewards nor punishments - there are Consequences.'0
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