SNB ready to intervene in currency markets after U.S. election

ZURICH (Reuters) – The Swiss National Bank stands ready to intervene in the currency markets if the outcome of the U.S. election triggers a rush into the safe haven currency, a member of the central bank’s governing board said on Monday.

Andrea Maechler declined to comment on the outcome of the election or how it would affect the Swiss franc or financial markets.

But “the uncertainties are large,” she said in an interview with Swiss TV to be broadcast on Monday evening.

“What I can say is just like with the Brexit vote, we are ready,” Maechler said. “My team is prepared and the Swiss National Bank will be there, if necessary, to intervene to stabilize the currency markets.”

In June, the SNB gave a rare confirmation that it had intervened in the currency market to weaken the Swiss franc in the wake of Britain’s vote to leave the European Union.

The Swiss franc rose to its highest level against the euro since the end of June last week on increased expectations that Donald Trump would win the race to the White House.

Source: Reuters.com

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