Switzerland Cuts Interest Rate

Swiss franc plummets in currency trading

Switzerland just announced a 25 basis point cut, bringing the rate to 0.25%. Switzerland is the latest of the developed nations to adopt a policy that effectively puts rates at 0% in order to try and stimulate the economy.

The move, however, caused the Swiss franc to plummet in currency trading on the FX market. CHF is down significantly againt the euro, pound and the yen. The Swiss franc is also down against the US dollar.

Switzerland has been, recently, trying to get rid of its safe haven status in forex trading. It appears that the strategy is working; Japanese yen and US dollar are now the safe haven currencies of choice.