The Swiss Franc weakened against Pound Sterling and fell against the US Dollar and Euro as the currency was punished for a decline in Switzerland’s June PMI and the ongoing weakness in the Eurozone.
According to figures published on Monday the Swiss Purchasing Managers Index slipped to 51.9 in June, down from the 52.2 recorded in May. The figure was slightly better economist forecasts for a decline to 51.4. Any level above 50 marks growth. It was the third consecutive month that the PMI was above 50, lending to support to a recovery in the small country’s industrial activity.
“Despite the improvement in orders and an increase in capacity utilization, companies nevertheless reduced their capacities,” said analysts at Credit Suisse, which co-complied the index. “We see this as a general consequence of the current general uncertainty.”
Switzerland’s economy is being impacted by the continuing recession in the Eurozone, in June both Ireland and France fell into it. Currently nine out of the 17 Eurozone countries are now reporting contractions in their economies.
Against the US Dollar the Franc declined after the ‘Greenback’ was supported by expectations that the Federal Reserve will soon begin to curb its $85 billion monetary easing programme.
The Franc also declined against the Euro after the Euro zone, released economic data showed that the unemployment rate ticked up to a new record high of 12.1% in May from 12% in April, compared to expectations for a reading of 12.3%. Another report showed that consumer price inflation in the Euro zone rose to 1.6% in June from 1.4% in May, in line with expectations.
Current Swiss Franc (CHF) Exchange Rates
Swiss Franc/ Euro Exchange Rate is currently in the region of: 0.8115
Swiss Franc/US Dollar Exchange Rate is currently in the region of: 1.0583
Swiss Franc/ Pound Sterling Exchange Rate is currently in the region of: 0.6953
Swiss Franc/ Australian Dollar Exchange Rate is currently in the region of: 1.1542
(Correct as of 15:00 pm GMT)
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