Published: 5 Apr at 1 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Cyprus, Australia, New Zealand, USA, Italy, Japan, Switzerland,
The Swiss Franc is unchanged against the Dollar and Euro on Friday as investors attention is focused on the Japanese Yen after the Bank of Japan took the market by surprise by announcing a radical new monetary expansion plan to battle deflation.
The Yen dropped by more than 3% against the ‘Greenback’ and plummeted to four year lows against the Australian and New Zealand
Dollars after the Japanese Central Bank said that it will pump $1.4 trillion into the world’s third largest economy, with the plan to include raising purchases of Japanese bonds to an annual pace of around $530 billion.
The Franc, which was capped at 1.20 per Euro by the Swiss national bank in 2011 to tackle recession and deflation, tracked the Euro higher against the Yen, hitting a two-month high against the Asian currency.
Against the Pound the Franc weakened as Sterling rose back above the key 1.44 level as the UK currency benefitted from some much needed positive economic data. UK new car registrations outperformed all expectations in March, posting a jump of 6% compared to the same period as 2012. The strong sells figures defied the Europe wide trend with the volume of car sales at their highest level since 2010 and are the 13th consecutive month of growth.
While the Swiss currency reached a 20 month-low of 1.2569 per euro in January, it has since strengthened to 1.2154 as Cyprus sought a bailout and political deadlock in Italy
prevented a government from being formed. Options indicate the franc will trade closer to the central bank-imposed 1.20 per euro cap by year-end than 1.25.
As of Friday, 5th April 2013, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.1802, GBP USD exchange rate was 1.5332, GBP AUD exchange rate was 1.4767, GBP NZD exchange rate was 1.8182, GBP JPY exchange rate was 149.5988, and GBP CHF exchange rate was 1.4328.