Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate – Franc forecast to fall after Putin says ‘there will be no war’

Pound Sterling to Swiss Franc exchange rate chart

The safe haven currencies of the Swiss Franc and Japanese Yen fell against the Pound and most other peers on Tuesday after comments by Russian President Vladimir Putin eased investor concerns over the situation in Ukraine.

Making his first public since the beginning of the crisis Putin told a press conference that Russia would not go to war with Ukraine. He added that he sympathised with the protestors in Kiev but said that the overthrow of former President Yanukovich was illegal. Viktor Yanukovych is the legitimate president of Ukraine, Putin said. Yet he also said Yanukovych, who he said was removed in an “unconstitutional coup”, has “no political future”. Putin said Russia gave him shelter because he would have been killed otherwise.

Earlier in the session the safe haven currencies had already begun to back pedal against riskier peers after Putin ordered troops on a military exercise close to the Ukrainian border to return to their bases.

A further escalation of the crisis in Ukraine poses a risk to the Swiss National Bank as demand for the safe haven currency reduces bets for a weaker currency. Yesterday saw the Franc come close to hitting the 1.2 Francs per Euro cap. The rise defied analyst forecasts for it to decline.

The Franc could see further movement if tensions increase again or on Friday when the latest inflation and unemployment data for the alpine nation is released.