After a record exchange rate: the franc is slightly weaker again – the euro is above 0.93 francs

The Swiss franc weakened slightly against the euro during Thursday evening. Late in the evening, the EUR/CHF currency pair was still lower than the night before.

The euro cost 0.9338 francs in the evening. In the late afternoon it was still well below 0.93 francs, with a daily low of 0.92575 francs. Only the day before, the rate had fallen below 0.94 francs and has continued to weaken since then. According to currency traders, the franc was more expensive than ever before, apart from the violent swings on January 15, 2015 after the abolition of the minimum exchange rate for the euro.

The dollar also continued its decline against the Swiss currency on Thursday. But the American currency also recovered late in the evening: the quotation stood at 0.8436 francs, back above 0.84 francs.

In market circles, the franc’s strength was mainly attributed to a weak dollar, exacerbated by a very thin market at the end of the year. Above all, expectations of interest rate cuts in the US are putting pressure on the US currency. The US Federal Reserve is expected to make rapid and strong interest rate cuts next year, but the ECB is also expected to cut key interest rates in 2024. The possibility of interest rate cuts by the SNB is estimated to be lower.

But the euro also fell slightly against the dollar on Thursday. In American trading, the price even fell below the $1.11 mark. Most recently, the European common currency cost $1.1065. The rather weak economic data from the US labor market did not weigh on the dollar in the afternoon.

In the US, initial jobless claims rose more than economists expected. The data indicate some weakening in the labor market, which has remained robust recently. Developments there play an important role for the monetary policy of the US Federal Reserve.

(hah/sda/awp)